Electronic Gold Receipts (EGR)
Background
EGRs are the conversion of physical gold into electronic form for gold trading. MINISTRY OF FINANCE (Department of Economic Affairs) New Delhi, through its NOTIFICATION dated 24th December 2021 added Electronic Gold Receipts (EGR) as Securities
EGR means an electronic receipt issued based on deposit of underlying physical gold. Vault Managers (VMs) will be responsible for the storage and safekeeping of gold deposits, creation of EGRs, withdrawal of EGR, grievance redressal related to quantity, etc., and reconciliation of physical gold with the record of EGRs published by the depository daily. The VMs are Sequel Logistics, Malca-Amit JK Logistics and Brinks India having their vault location across India.
SEBI Guidance
- SEBI vide its circular SEBI/HO/CDMRD/DMP/CIR/P/2022/07 dated January 10, 2022, released Framework for operationalizing the Gold Exchange in India. https://www.sebi.gov.in/legal/circulars/jan-2022/framework-for-operationalizing-the-gold-exchange-in-india_55251.html
- SEBI vide its circular No. SEBI/HO/CDMRD/DMP/P/CIR/2022/19 dated February 14, 2022, has provided the Standard Operating Guidelines for the Vault Managers and Depositories - Electronic Gold Receipts (EGR) segment. https://www.sebi.gov.in/legal/circulars/feb-2022/standard-operating-guidelines-for-the-vault-managers-and-depositories-electronic-gold-receipts-egr-segment_56064.html
- SEBI Circular SEBI/HO/CDMRD/DMP/P/CIR/2022/18 on Trading features pertaining to the Electronic Gold Receipts (EGR) Segment dated February 14, 2022. https://www.sebi.gov.in/legal/circulars/feb-2022/trading-features-pertaining-to-the-electronic-gold-receipts-egr-segment_56063.html
- SEBI Circular SEBI/HO/CDMRD/DMP/P/CIR/2022/36 on Product Specifications pertaining to the Electronic Gold Receipts (EGR) segment in India dated March 28, 2022. https://www.sebi.gov.in/legal/circulars/mar-2022/circular-on-product-specifications-pertaining-to-egr-segment-in-india_57235.html
- SEBI Circular SEBI/HO/CDMRD/CDMRD_DRM/P/CIR/2022/50 on Comprehensive Risk Management Framework for Electronic Gold Receipt (EGR) segment dated April 11, 2022. https://www.sebi.gov.in/legal/circulars/apr-2022/comprehensive-risk-management-framework-for-electronic-gold-receipts-egr-segment_57925.html
SEBI Press release
SEBI released a circular on Framework of Operationalizing Gold Exchange in India on January 10, 2022, for trading of gold in electronic form through their demat account.
https://www.sebi.gov.in/legal/circulars/jan-2022/framework-for-operationalizing-the-gold-exchange-in-india_55251.html
Tariff Charges
- All the current transaction charges will be same for the EGR transactions
- Storage charges received from Vault Managers – Rs. 15/- per kg per day per BO
Queries regarding the EGR process may be sent to [email protected] or connect on (022) 2305 - 8735 / 8730 / 8768 / 8798 / 8682 / 8754.
Harmonised Structure
| State | Location | Vault Manager Provider | Standard of Gold (LBMA/IGDS) | Purity | ISIN | Unit of Measure (in gms) | No of Units | Total deposits (in kg) |
| Gujarat | Ahmedabad | Sequel Logistics | IGDS | 999 | ING999300015 | 10 | 5 | 0.05 |
Withdrawal Centres
| Name of Vault Manager | Vault Location | Address | ISIN |
| Sequel Logistics Private Limited | Ahmedabad | Pranidhan, Opp.Niidhi Hospital, Near NR Stadium Circle, Navrangpura, Ahmedabad, 380009 - Gujrat | ING999300015 |