The Ministry of Finance has included “Electronic Gold Receipt” (EGR) as securities under section 2(h)(iia) of the Securities Contracts (Regulation) Act, 1956 vide its notification dated December 24, 2021. Now, EGR will have the same trading, clearing, and settlement capabilities as other securities traded on exchanges.
The Government has defined EGR as:
“Electronic Gold Receipt” means an electronic receipt issued on the basis of deposit of underlying physical gold in accordance with the regulations made by the Securities and Exchange Board of India under section 31 of the said Act.