Electronic Gold Receipts: BSE creates HISTORY with India's 1st successful EGR transaction in Muhurat Trading

Electronic Gold Receipts: It's a historic moment as BSE has announced the successful creation, transaction, and settlement of Electronic Gold Receipts (EGRs).   The first transaction took place on 24 October 2022 during the muhurat trading session, was successfully settled on T+1 day, as investors benefitted from access to liquidity using the newly created EGRs. "BSE's seamless trading platform, integrated with a robust clearing framework of ICCL for EGR have proved beneficial for market participants. The exchange also announced that over 100 members have been successfully onboarded on the newly launched EGR segment," an official statement by BSE said. 

On the occasion of muhurat trading, BSE launched two new EGR products of 995 and 999 purity and trading will be in multiples of 1 grams and deliveries in multiples of 10 grams and 100 grams thus offering new solutions for investors, Jewellers, and institutions to invest in Gold. 

"The transaction highlights the nature of products BSE aims to bring to the Indian Capital Markets – relevant, innovative, and highly accessible to key participants," the statement added. 

Commenting on the historic moment, Sameer Patil, Chief Business Officer of BSE said "By launching EGRs, BSE is delighted to offer greater choice to investors seeking to invest in gold. This reflects our commitment to continuously facilitate access to high-quality investment-based products and services for our stakeholders."

Electronic Gold Receipts: EGR

-EGRs offers the participants a safe and convenient avenue to invest in gold and comes at a critical time to support Bullion Industry as it grows in scale. 

-BSE expects greater trades and liquidity in the days ahead as it continues to educate the market and onboard new members.

- In September 2022, BSE had received final approval from the capital markets regulator Securities and Exchange Board of India (SEBI) for introducing the EGR segment on its platform. 

-The exchange had received in-principle approval from SEBI in February after which the exchange conducted several mock trading in the test environment for exchange members to facilitate trading in EGRs. 

-Since 2015, the BSE has been working collaboratively with the regulators and market participants, across India, to gain an in-depth understanding into the commercial and technical nuances of a segment that is still in the preliminary stages of its maturation.