The National Stock Exchange of India commenced live trading in Electronic Gold Receipts (EGRs) on Monday, May 18, 2026, following a successful mock trading session conducted on May 16. According to reports from The Economic Times, the exchange stated that the EGR product has received a strong response from market participants and the broader bullion ecosystem. 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, marking a significant step toward modernising India's gold investment ecosystem.
Each EGR is backed by corresponding physical gold stored with SEBI-registered vault managers. As reported by The Economic Times, depositories coordinate the creation, holding, transfer and extinguishment of EGRs, while vault managers and depositories reconcile the quantity of EGRs issued against the physical gold stored in vaults. The framework includes depositories conducting inspections of the gold deposited with vault managers, ensuring transparency and regulatory compliance. The gold available under EGRs currently comes in purity levels of 99.9% (999) and 99.5% (995), ensuring standardised quality for investors. EGRs 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.
Investors can place withdrawal requests through their depository participant to convert EGRs back into physical gold. According to The Economic Times, the depository forwards the request to the vault manager, who delivers the physical gold after completing the prescribed process. Once delivery takes place, the corresponding EGR is extinguished. For exchange-traded transactions, investors receive standard contract notes or trade confirmations from brokers, with EGR holdings reflecting in demat account statements. EGR holders have the option to convert their electronic holdings into physical gold subject to exchange guidelines and vaulting norms. However, EGR trades on exchange platforms do not attract GST, but conversion of receipts into physical gold carries a 3 per cent GST levy. To trade EGRs, investors require a demat account and trading account linked to an NSE-registered broker, similar to trading shares or ETFs on the platform.
Currently, vaulting and collection centres are operational in Ahmedabad and Mumbai, with four additional centres in Delhi, Kolkata, Chennai and Bengaluru becoming operational on Monday. As reported by The Economic Times, the NSE stated that the network will continue expanding in phases and is expected to eventually cover nearly 120 centres across the country. The broader objective of the EGR framework is to build a more transparent and regulated gold ecosystem while strengthening India's role in global bullion markets. According to The Economic Times, NSE's technology and liquidity framework could make gold investing more transparent, secure and accessible while integrating gold more closely into India's capital market ecosystem.
The launch of EGR trading could benefit both retail and institutional participants by improving accessibility, reducing storage concerns, and enabling efficient gold transactions through exchange infrastructure. The regulated framework is also expected to support better price discovery, improved liquidity, and enhanced investor protection. Unlike Gold ETFs, which primarily provide indirect exposure to gold through fund units, EGRs represent direct ownership of physical gold stored in regulated vaults and allow physical convertibility. The product enters a market where investors already have multiple options to gain gold exposure, including physical gold purchases, gold exchange traded funds (ETFs), gold mutual funds and sovereign gold bonds. However, EGRs still face several challenges including liquidity concerns, limited broker support, and behavioural challenges as many Indian households continue to associate gold ownership with physical possession rather than digital holdings.
