EGRs are exchange-traded instruments backed by physical gold of standardised purity and are designed to enable investors to gain exposure to gold in a regulated, exchange-traded format. The product aims to improve transparency, standardisation and liquidity in gold investment within India’s financial markets.
Announcing the development, NSE Managing Director and CEO Ashish Kumar Chauhan said the participation of asset managers would help build scale and investor confidence in the EGR ecosystem, which he described as a step toward financialising gold in a more structured manner.
Commenting on the initiative, Madhu Lunawat said the EGR framework could support broader adoption of exchange-traded gold instruments and improve access through demat-based transactions.
The initiative is intended to route gold investment through formal market infrastructure, where investors can buy and sell EGRs via demat accounts. According to the exchange, this could help bring greater uniformity to pricing and purity standards compared with physical gold markets.
India is among the world’s largest consumers of gold, with a significant portion of purchases still occurring through local markets. The EGR framework is positioned as an attempt to shift part of this demand into regulated financial instruments.
