WHAT IS AN EGR?

An Electronic Gold Receipt (EGR) is a dematerialised financial instrument backed 1:1 by physical gold held in SEBI-regulated vaults. It has been officially notified as a 'security' under the Securities Contracts (Regulation) Act, 1956 (SCRA), giving it the same legal standing as equities.

EGRs were introduced to bring gold investment into India's mainstream financial market — making it easier, safer, and more transparent than holding physical gold while retaining the option to take physical delivery at any time.

The National Stock Exchange of India (NSE) launched EGR trading in May 2026. The SEBI Master Circular governing EGRs was last updated on June 24, 2024.

HOW IT WORKS — 3 TRANCHES
01
CREATION
Physical gold is deposited at a SEBI-registered Vault Manager. The Vault Manager creates an EGR which is credited to the investor's demat account via a Depository (CDSL / NSDL).
02
TRADING
EGRs trade on the NSE like any listed security — continuous trading, real-time price discovery, settlement via Clearing Corporation (transfer of EGRs and cash between buyer and seller).
03
CONVERSION
The EGR holder requests the Depository to convert EGRs back to physical gold. The Vault Manager delivers the gold and simultaneously extinguishes the EGRs from the demat record.
KEY FEATURES
🏅
1:1 Backed by Physical Gold
Every EGR corresponds to actual gold sitting in a SEBI-regulated vault. No EGR can be created without the corresponding physical gold in the vault.
📋
Certified Gold Standards
Gold must comply with the LBMA Good Delivery Standard or the India Good Delivery Standard, or any other standard specified by SEBI.
🔄
Fungible & Inter-Operable
EGRs are fungible — gold deposited against one EGR can be delivered against another of the same specification. You can withdraw physical gold from a different vault location than where it was originally deposited.
💳
Held in Your Demat Account
EGRs are held and transferred just like equity shares — through your existing demat account with CDSL or NSDL. No separate custody arrangement needed.
🏦
SEBI Regulated — Full Oversight
Vault Managers, Depositories, Stock Exchanges, and Clearing Corporations are all regulated by SEBI. Regular reconciliation and periodic physical inspection of vaulted gold is mandated.
📍
Withdrawal Centres Pan-India
Vault Manager branches across India serve as collection / withdrawal centres for physical gold, expanding accessibility beyond major cities.
TRADING SPECIFICATIONS
ParameterDetail
ExchangeNSE (National Stock Exchange of India)
Trading DaysMonday to Friday
Trading Hours9:00 AM – 11:30 PM (extended for international market alignment)
Pre-open Session8:45 AM – 9:00 AM  ·  Price range ±5% from reference price
Normal Market Price Band±10% from previous close (dynamic, relaxable in 5% increments)
Block Deal Window3:05 PM – 3:20 PM  ·  Min. order ₹10 Crore  ·  Within ±1% of VWAP
Bulk Deal Threshold5% of market-wide outstanding gold underlying
SettlementVia Clearing Corporation — transfer of EGRs and cash
Unique Client Code (UCC)Mandatory for all transactions  ·  PAN required
Storage & Withdrawal ChargesLevied by Vault Managers — disclosed upfront on Depository websites
Gold StandardLBMA Good Delivery / India Good Delivery Standard
EGR vs OTHER GOLD INVESTMENTS
Feature EGR Gold ETF SGB Gold MF Physical Gold
PHYSICAL DELIVERY✔✘✘✘✔
DEMAT ACCOUNT NEEDEDYesYesOptionalNoNo
INTRADAY TRADING✔✔✘✘✘
INTEREST INCOME✘✘2.5% p.a.✘✘
TAX-FREE GAINS ON MATURITY✘✘✔ (8 yrs)✘✘
STORAGE RISKNoneNoneNoneNoneHigh
MAKING CHARGESNoneNoneNoneNoneYes
EXTENDED TRADING HOURSTill 11:30 PM3:30 PM✘✘✘
REGULATORY FRAMEWORKSEBI (EGR)SEBI (MF)RBI / GOISEBI (MF)—
REGULATORY FRAMEWORK

EGRs are governed by the SEBI (Vault Managers) Regulations, 2021, notified on December 31, 2021. The Government of India declared EGRs as 'securities' under SCRA via Gazette notification S.O. 5401(E) dated December 24, 2021.

The governing SEBI Master Circular (SEBI/HO/MRD/MRD-PoD-1/P/CIR/2024/87, dated June 24, 2024) consolidates all circulars issued till May 31, 2024 and supersedes the previous Master Circular of June 1, 2023.

Key participants regulated under this framework: Vault Managers (physical custody), Depositories (CDSL / NSDL — demat records), Stock Exchanges (trading platform), and Clearing Corporations (settlement).