SEBI Circular dated March 28, 2022 has issued Product specifications pertaining to the Electronic Gold Receipts (EGR) segment in India.
The framework, inter alia, states that the entire transaction in the EGR segment has been divided into three tranches.
1. In tranche 1, physical gold will be converted into EGR;
2. In tranche 2, EGR shall be traded on stock exchanges; and
3. In tranche 3, EGR can be converted into physical gold.
The framework also states that stock exchanges may launch contracts with different denominations for trading and or conversion of EGR into gold.
This Circular shall come into force with immediate effect.
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