The Securities and Exchange Board of India on 28th March 2022 has notified the product specifications pertaining to electronic gold receipts. SEBI had earlier issued the standard operating guidelines for vault managers and depositories in Electronic Gold Receipts (EGR) segment.
The trading of EGR shall take place on stock exchanges, in the ‘trading unit’, which shall be specified by the stock exchanges. The stock exchanges shall ensure that trading unit is not smaller than 10th part of the corresponding deposit unit. For example: On deposit of 100gm gold bar 1 EGR may be created of 100 gm trading unit or 10 EGRs may be created of 10gm each trading unit.
The ‘settlement unit’ of EGR shall be same as ‘trading unit’, which shall be specified by the stock exchanges.
Any person desirous of dealing in EGR on the stock exchange shall deposit the gold with the registered Vault Managers, in the ‘deposit unit’, which shall be specified by the stock exchanges.
Further the details of deposit unit/ withdrawal unit and trading unit/ delivery unit shall be clearly spelt out in the contract specifications of the exchange.
