Electronic Gold Receipts (EGR)

Electronic Gold Receipts (EGRs) are exchange-traded securities in India that represent ownership of physical gold stored in SEBI-approved vaults. The Ministry of Finance formally classified EGRs as "Securities" via a notification dated 24 December 2021, defining them as electronic receipts issued against deposits of underlying physical gold. CDSL

How they work

The system runs on a three-stage flow: gold is deposited with SEBI-registered vault managers (currently firms like Brinks India and Sequel Logistics), who verify purity and quantity against the India Good Delivery Standard. An equivalent electronic receipt is then credited to the investor's demat account and can be traded on stock exchanges like shares. Settlement is on a T+1 rolling basis, with the cut-off for gold deposit and withdrawal at 3:00 PM. Investors can redeem EGRs for physical gold at any time by placing a withdrawal request, after which the EGR is extinguished. SEBI