{"id":16862,"date":"2026-05-18T10:35:43","date_gmt":"2026-05-18T10:35:43","guid":{"rendered":"https:\/\/saharanews.in\/2026\/05\/18\/what-are-egrs-how-do-they-work-and-what-investors-should-know\/"},"modified":"2026-05-18T10:35:43","modified_gmt":"2026-05-18T10:35:43","slug":"what-are-egrs-how-do-they-work-and-what-investors-should-know","status":"publish","type":"post","link":"https:\/\/saharanews.in\/?p=16862","title":{"rendered":"What are EGRs, how do they work, and what investors should know"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"e9jwa\">\n<div class=\"vdo_embedd\">\n<div class=\"GfdvZ\">\n<section class=\"_bIDB  clearfix id-r-component leadmedia undefined undefined  E9tg9 \" style=\"top:0px\">\n<div class=\"_bIDB\" data-ua-type=\"1\" onclick=\"stpPgtnAndPrvntDefault(event)\">\n<div class=\"ypVvZ\">\n<div class=\"WGttI\"><img src=\"https:\/\/static.toiimg.com\/thumb\/msid-131172911,imgsize-920502,width-400,height-225,resizemode-4\/-.jpg\" alt=\"NSE launches Electronic Gold Receipts trading today: What are EGRs, how do they work, and what investors should know\" decoding=\"async\" fetchpriority=\"high\"\/><\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n<p>Trading in Electronic Gold Receipts (EGRs) on the National Stock Exchange (<a href=\"https:\/\/timesofindia.indiatimes.com\/topic\/nse\" styleobj=\"[object Object]\" class=\"\" commonstate=\"[object Object]\" frmappuse=\"1\">NSE<\/a>) begins from May 18, marking a significant change in India\u2019s organised gold market and offering investors a new way to buy and hold the precious metal in digital form, ET reported.<span class=\"id-r-component br\" data-pos=\"4\"\/>The market will operate from Monday to Friday between 9 am and 11:30 pm, extending to 11:55 pm during the US daylight saving period, with settlements taking place under a T+1 cycle. Participants are expected to include retail investors, jewellers, bullion traders, refineries and other market stakeholders.<span class=\"id-r-component br\" data-pos=\"6\"\/>The launch of EGRs represents one of the biggest structural shifts in gold investing in recent years, allowing investors to own gold electronically while being backed by actual physical gold stored in Securities and Exchange Board of India (SEBI)-regulated vaults.<span class=\"id-r-component br\" data-pos=\"10\"\/>Like shares and other securities, ownership of the underlying gold will be reflected directly in investors\u2019 demat accounts.<span class=\"id-r-component br\" data-pos=\"12\"\/><\/p>\n<p><h2>Why EGRs matter <br \/><\/h2>\n<\/p>\n<p><span class=\"id-r-component br\" data-pos=\"14\"\/>For decades, gold has remained a preferred store of value in Indian households, often serving as a symbol of wealth, security and family inheritance. However, ownership of physical gold has traditionally involved concerns around purity, storage costs, theft risk and resale deductions.<span class=\"id-r-component br\" data-pos=\"17\"\/>EGRs are designed to address some of these limitations while preserving exposure to gold prices.<span class=\"id-r-component br\" data-pos=\"19\"\/><\/p>\n<p><h2>What exactly is an Electronic Gold Receipt?<br \/><\/h2>\n<\/p>\n<p><span class=\"id-r-component br\" data-pos=\"21\"\/>An Electronic Gold Receipt is essentially a digital representation of ownership of physical gold. Each receipt corresponds to a fixed quantity of gold stored in regulated vaults within a framework involving exchanges, clearing corporations, depositories and licensed vault managers.<span class=\"id-r-component br\" data-pos=\"23\"\/>The receipts will be available in different denominations including 1 kilogram, 100 grams, 10 grams, 1 gram and 100 milligrams, potentially broadening participation across different investor categories, according to ET report.<span class=\"id-r-component br\" data-pos=\"26\"\/>The product enters a market where investors already have multiple options to gain exposure to gold, including physical gold purchases, gold exchange traded funds (ETFs), gold mutual funds and sovereign gold bonds.<span class=\"id-r-component br\" data-pos=\"28\"\/>Physical gold involves direct ownership through jewellery, coins or bars. Gold ETFs allow exposure to prices without physically holding the metal, while gold mutual funds invest in gold-linked instruments. <!-- -->Sovereign Gold Bonds provide gold-linked returns through government securities.<span class=\"id-r-component br\" data-pos=\"32\"\/><\/p>\n<p><h2>How are EGRs different from other gold investments?<br \/><\/h2>\n<\/p>\n<p><span class=\"id-r-component br\" data-pos=\"34\"\/>EGRs still face several challenges. Liquidity remains a key concern, as stronger institutional participation and active market-making may be needed to create confidence among retail investors. Broker support also remains limited, with several trading platforms yet to fully enable EGR transactions.<span class=\"id-r-component br\" data-pos=\"36\"\/>There is also a behavioural challenge as many Indian households continue to associate gold ownership with physical possession rather than digital holdings.<span class=\"id-r-component br\" data-pos=\"39\"\/>Taxation could also affect adoption. While EGR trades on exchange platforms do not attract GST, conversion of receipts into physical gold carries a 3 per cent GST levy.<span class=\"id-r-component br\" data-pos=\"41\"\/>The broader objective of the EGR framework is to build a more transparent and regulated gold ecosystem while strengthening India&#8217;s role in global bullion markets.<span class=\"id-r-component br\" data-pos=\"43\"\/><\/p>\n<p><h2>What NSE says<br \/><\/h2>\n<\/p>\n<p>According to the exchange, the system could eventually bring investors, jewellers, traders and refiners onto a unified platform and reduce dependence on fragmented city-level pricing structures.<span class=\"id-r-component br\" data-pos=\"47\"\/>NSE Chief Business Development Officer Sriram Krishnan said the launch marks an important evolution in India\u2019s engagement with gold, ET quoted .<span class=\"id-r-component br\" data-pos=\"49\"\/>According to the exchange, NSE&#8217;s technology and liquidity framework could make gold investing more transparent, secure and accessible while integrating gold more closely into India&#8217;s capital market ecosystem.<span class=\"id-r-component br\" data-pos=\"51\"\/><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/timesofindia.indiatimes.com\/business\/india-business\/nse-launches-electronic-gold-receipts-trading-today-what-are-egrs-how-do-they-work-and-what-investors-should-know\/articleshow\/131172696.cms\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Trading in Electronic Gold Receipts (EGRs) on the National Stock Exchange (NSE) begins from May 18, marking a significant change in India\u2019s organised gold market and offering investors a new way to buy and hold the precious metal in digital form, ET reported.The market will operate from Monday to Friday between 9 am and 11:30&#8230;<\/p>\n","protected":false},"author":1,"featured_media":16863,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[],"class_list":["post-16862","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/posts\/16862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16862"}],"version-history":[{"count":0,"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/posts\/16862\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=\/wp\/v2\/media\/16863"}],"wp:attachment":[{"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/saharanews.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}