Home Gold Investing Good news for gold investors NSE EGR trading set to start from this date
Gold Investing

Good news for gold investors NSE EGR trading set to start from this date

Share


The National Stock Exchange of India has officially announced the launch date for its electronic gold receipts (EGRs). The securities shall begin to trade at from May 18, 2026 (Monday). EGR is a new segment to deepen India’s gold ecosystem, which was earlier this months, aimed at bringing transparency, efficiency and formalisation to the gold market through a regulated, secure and technology-driven route for trading the metal.

EGRs are dematerialised securities representing ownership of physical gold stored in SEBI-accredited vaults and held electronically through depositories. Each receipt is fully backed by gold and can be traded on the exchange. NSE said the move is meant to bridge the gap between physical gold and financial markets, while improving price discovery, participation and trust among market participants.

NSE said gold holds a distinct place in India, valued for tradition and gifting and also seen as a long-term store of value in uncertain times. As investors look for transparent pricing, safe holding and the option to start small, EGRs offer a modern route to participate in gold while retaining physical backing, regulated storage and electronic holding.

The receipts are linked to standardised gold, allow market-based price discovery and can be bought or sold in defined denominations and purity. They can also be converted to and from physical gold through the prescribed process. NSE also recorded the dematerialisation of a 1,000-gram gold bar into an EGR, describing it as proof of the framework’s operational readiness for delivery-backed trading.

According to the exchange, EGRs are digital assets representing gold ownership that can be traded like stocks and bonds while remaining redeemable as physical gold. The benefits listed for investors include unified pricing described as ‘one nation, one price’, liquidity, assured gold quality, fungibility of delivery, settlement guarantee, portfolio diversification, demat holding, easy exchange trading and flexibility across gold denominations.

For investors, the first step is to have a demat account and a trading account with a SEBI-registered stockbroker, as EGRs cannot be bought or sold without them. Investors also need to complete KYC by submitting PAN, Aadhaar, bank account details and address proof. Trading access is activated after the verification process is completed.

Investors must then check whether their broker has enabled EGR trading on its platform, since the segment is still new. Once access is available, they can search for EGR contracts based on quantity. NSE EGRs are available in denominations including 1 kilogram, 100 grams, 10 grams, 1 gram and 100 milligrams, allowing investors to begin with smaller quantities instead of larger physical purchases.

EGR prices move with prevailing gold prices in domestic and global markets. After selecting a denomination, investors can enter the quantity, check the live gold-linked market price and place a buy order during trading hours. The purchased units are credited to the demat account after settlement, which currently follows a T+1 cycle. Investors can then hold, track or sell the units during market hours through the exchange.

With EGRs, NSE has introduced a framework that combines physical backing with electronic trading, demat holding and regulated vault storage. The exchange said the segment is expected to support a more transparent and efficient gold market in India, while offering investors and other participants a formal channel to buy, hold and trade gold.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.



Source link

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Silver tumbles Rs 17,500, gold down Rs 3,100 as Iran war tensions stoke inflation worries. All eyes on Trump-Xi meet

Gold and silver prices opened sharply lower on Multi Commodity Exchange (MCX)...

Gold Remains Strong Investment Bet Despite Import Duty Hike: Emkay Wealth’s Thomas

India’s decision to sharply raise import duties on gold, silver and other...

Best Way to Buy Gold in an IRA: Complete 2026 Guide Released

BURBANK, Calif., May 14, 2026 (Newswire.com) - IRAEmpire is pleased to announce...

Xetra-Gold: The Digital Gold Investment Product Explained

Xetra-Gold offers investors a straightforward way to own physical gold through exchange-traded...