BSE Seeks SEBI Approval to Launch Electronic Gold Receipts

SEATTLE (Scrap Monster): The Bombay Stock Exchange (BSE) announced its decision to seek approval of the Securities and Exchange Board of India (SEBI) to launch electronic gold receipts (EGRs) on its platform. The exchange wishes to receive the market regulator nod before the upcoming festive season. Incidentally, Dhanteras- the auspicious day to purchase gold falls on November.

ALSO READ: SEBI Suggests Routing All Gold Imports Through Spot Gold Exchange

According to Sameer Patil, Chief Business Officer, BSE, the exchange plans to introduce EGRs of various denominations, starting from 1 gram to as high as 1 kilogram for its customers. It hopes to get the final approval from SEBI at the earliest so as to launch it before Dhanteras, he said.

The exchange stated that the introduction of trade in EGRs would lead to uniform price structure for gold across the country. It must be noted that the gold prices does not follow any uniform standard in the country. In addition to eliminating bullion market inefficiencies, EGRs will help in creation of transparent platform for bullion trading.

The SEBI had recently launched the framework for new gold exchange, which allows gold trade in the form of EGRs. The framework mentions that existing exchanges could start dedicated wing to handle EGR transactions.