NSE’s Electronic Gold Receipts record over ₹23 crore turnover on debut: How investors can buy

Electronic Gold Receipts (EGRs) worth approximately ₹23.34 crore changed hands on the National Stock Exchange (NSE) on November 6, as trading in the segment backed by gold infrastructure company Augmont Enterprises witnessed activity on its opening day.

According to data shared by Augmont, 1,60,357 EGR units were traded by around 4:25 pm on Friday (November 6). The company said the segment saw active buying and selling, with prices moving in a range of ₹1,450.50 to ₹1,460 during the session. The bid-ask spread remained between ₹0.50 and ₹1.

The trading activity follows the collaboration between NSE and Augmont to develop the EGR ecosystem, which allows investors to hold and trade receipts representing ownership of physical gold through a demat account.

What are Electronic Gold Receipts?

EGRs are exchange-traded securities backed by physical gold stored in regulated vaults. They allow investors to buy and sell gold through the stock exchange without having to physically store the metal themselves.

The receipts are held in dematerialised form, like shares, and can be traded through a stockbroker. NSE offers EGR contracts in different denominations, including 100 milligrams, 1 gram, 10 grams, 100 grams and 1 kg, subject to the applicable product specifications.

The gold backing the receipts is stored with registered vault managers. Investors can continue holding the EGRs in their demat accounts or opt for physical delivery by following the prescribed withdrawal process. Physical withdrawal may involve additional charges, including storage, testing and transportation costs.

EGR trades follow a T+1 settlement cycle, meaning the securities and funds are transferred on the next working day after the trade.

How can investors buy EGRs?

Investors need an active trading and demat account with a stockbroker that offers access to the NSE’s EGR segment. They can then place buy and sell orders through the broker’s trading platform, similar to transactions in listed shares.

However, EGR trading is not necessarily available through every stockbroking platform. Investors should check with their existing broker whether it has enabled the EGR segment before attempting to place an order.

For instance, Zerodha’s support page currently says that it does not support EGR trading, although the facility is expected to be enabled. This highlights the limited availability of the product across brokerage platforms.

What should investors check before buying?

Apart from the prevailing market price, investors should check the denomination and purity of the EGR contract, brokerage and depository charges, and any applicable vault storage charges.

Those considering physical delivery should also check the withdrawal process, minimum delivery quantity and associated charges with the relevant vault manager.

While EGRs provide an exchange-based route to hold gold, investors should also consider liquidity and the availability of buyers and sellers before placing orders.