What are Electronic Gold Receipts? NSE’s new gold trading move explained

Mumbai: National Stock Exchange of India has announced the introduction of Electronic Gold Receipts, a new trading segment designed to enhance transparency, efficiency and formalisation within India’s gold market, according to an official statement.

The exchange said the initiative, which came into effect on May 4, 2026, is expected to connect the physical gold market with the financial system by providing a regulated and secure platform for trading gold-linked instruments.

What are Electronic Gold Receipts

Electronic Gold Receipts, or EGRs, are dematerialised securities that signify ownership of physical gold. The gold backing these instruments is stored in vaults accredited by Securities and Exchange Board of India and held electronically through depositories. Each receipt is fully supported by physical gold and can be traded on the exchange, bringing gold further into the formal financial ecosystem.

NSE highlights benefits of the new system

The NSE said the launch is aimed at building a strong and transparent structure for gold trading. It added that the platform would support efficient price discovery, increase market participation and strengthen trust among stakeholders such as jewellers, refiners, traders and institutional investors.

Successful demonstration of digital conversion

As part of the rollout, the exchange demonstrated the conversion of a 1,000 gram gold bar into an Electronic Gold Receipt. This exercise showcased how physical gold can be transformed into a secure and tradable digital asset within a regulated framework.

NSE official outlines long-term vision

Sriram Krishnan, Chief Business Development Officer at NSE, said the launch represents a significant shift in how gold is accessed and traded in India.

“The introduction of Electronic Gold Receipts at NSE marks a pivotal evolution in how India interacts with its most cherished asset. By leveraging NSE's robust technology and liquidity framework, we are democratizing access to gold, enabling investors across the nation to trade with unprecedented transparency and confidence. We believe that by creating a seamless, secure, and digital pathway for gold investment, we are positioning gold as a modern, integrated asset class within our capital markets, ultimately reducing dependence on fragmented benchmarks and fostering deeper financial inclusion,” he said.

Flexible investment and improved access for investors

The exchange further stated that EGRs will allow investors to hold gold electronically while ensuring quality assurance.

It also enables easy conversion between physical and digital formats. Investors will be able to participate with smaller quantities, improving liquidity and offering flexibility similar to other financial instruments held in dematerialised form.