NSE Electronic Gold Receipts (EGR) Launched with SEBI Nod
Why in the news
The National Stock Exchange of India brought out a tradable electronic form of gold, after getting the go-ahead from the market regulator.
Key facts
- Product: Electronic Gold Receipt (EGR).
- Launched by: National Stock Exchange of India (NSE), with SEBI approval.
- Nature: a dematerialised security whose value is backed by real gold kept in secure vaults.
- Tax angle: no GST is charged on trading.
Significance
- Aims to modernise gold trading and improve transparency.
- Supports better price discovery and wider investor participation.
- Encourages digital gold investment and financial inclusion.
Exam angle
- Regulator that approved: SEBI.
- Exchange: NSE. Underlying asset: physical gold in vaults.
- Remember the feature: no GST on EGR trading.