Trading in the EGR segment will take place from Monday to Friday and the stock market can set the time frame for this business from 9 am to 11.55 pm.
An electronic receipt will be given on physical gold deposit.
market regulator SEBI in the stock markets Electronic Gold Receipts (Electronic Gold Receipts- EGR, Business guidelines have been issued. The Securities and Exchange Board of India (SEBI) said in its circular that trading in the EGR segment will take place from Monday to Friday and Stock Market The time frame for this business can be set within 9 am to 11.55 pm. SEBI has given details of various aspects related to EGR trading on the stock market, charges levied on transactions, wholesale deals, price range, Investor Protection Fund and Investor Service Fund. provisions have also been prescribed.
According to the SEBI circular, it will be the responsibility of the exchange to keep reasonable charges levied by the stock exchanges on EGR transactions so that the interest of investors is not affected. According to the blueprint of gold exchange presented by SEBI, an electronic receipt will be given on depositing physical gold. This receipt will be traded on the Gold Exchange. Delivery of physical gold can also be taken by submitting this electronic receipt.
Gold exchange approved
SEBI Board in its meeting held on 28th September, 2021 approved the framework of Gold Exchange SEBI (Vault Managers) Regulations, 2021. The EGR was subsequently notified as a ‘Security’ under the Securities Contracts (Regulation) Act 1956 in December 2021, paving the way for the operation of the Gold Exchange in India. Subsequently, the Framework for Operation of Gold Exchange in India was also issued.
Guidelines covering trading hours, transaction fees by stock exchanges, block and bulk deals, price bands, Investor Protection Fund (IPF) and Investor Service Fund to specify the details of various aspects of trading of EGR on recognized stock exchanges now And the Unique Client Code was released.