Electronic gold receipts trading begins on NSE with Augmont, topping INR 33 crore on day one

Live trading in electronic gold receipts (EGRs) began on the National Stock Exchange (NSE) on Friday, with Augmont as the integrated gold platform partner. NSE data till 2200 hours showed turnover of Rs 33.11 crore on the first day. The exchange recorded 2,27,444 EGR contracts during the session.

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In a joint statement, NSE and Augmont said prices stayed within a tight band. The intraday range was Rs 1,450.50-1,465, indicating orderly price discovery. The launch came less than six months after the exchange commenced live trading in EGRs electronic gold receipts on May 18.

NSE electronic gold receipts trading and partnership with Augmont

NSE has partnered with Augmont Enterprises to strengthen the development of the EGR ecosystem in the country. The collaboration is meant to support an exchange-regulated spot gold market. It combines Augmont’s role in EGR creation, redemption, liquidity provision, delivery and price discovery with NSE’s trading infrastructure.

Under this arrangement, Augmont supports the creation, vaulting, redemption and liquidity ecosystem for EGRs, and NSE provides the exchange infrastructure for trading. The aim is to improve how spot gold is traded on an organised platform. Both firms positioned the framework around transparent prices and structured market participation.

Electronic gold receipts features, demat access and settlement cycle

Each electronic gold receipt (EGR) represents 100 milligrams of physical gold. The underlying gold is kept in Sebi-regulated vaults. Investors buy and sell EGRs through demat accounts. Investors can also convert eligible holdings into physical gold, subject to the applicable framework.

The segment follows a T+1 settlement cycle for trades in electronic gold receipts. This means a trade done on one day is settled on the next business day. Securities and funds move through an exchange-regulated clearing and settlement mechanism. The structure is intended to make transfers predictable for participants.

Electronic Gold Receipts are securities that represent ownership of physical gold stored in vaults accredited by the Securities and Exchange Board of India (Sebi). Buyers do not take delivery like coins, bars or jewellery at purchase. Instead, holdings remain electronic in a demat account, similar to shares.

Electronic gold receipts purity options and smaller denominations

The platform offers electronic gold receipts across different denominations and purity standards. Options include 995 and 999 purity products. This lets investors choose based on investment needs and preferred purity. The range also includes smaller gold-linked units, which can suit investors making lower-value purchases.

Ketan Kothari, Whole-time Director at Augmont Enterprises Ltd, said day-one outcomes mattered for the segment. "At Augmont, we have brought together our refining capabilities and physical gold infrastructure to support the creation, vaulting and redemption of EGRs. We believe this initiative can play an important role in making physical gold more accessible, transparent and integrated with Indias formal financial ecosystem,\" Kothari said.

Kothari said the company would keep working on adoption across market participants. \"Our focus remains on strengthening the ecosystem and supporting its wider adoption among investors, brokers and other market participants.\" The statement linked early trading volumes, two-way quotes and price behaviour with the market’s initial functioning.

Augmont operates across several parts of the precious metals chain in India. The company’s activities include refining, wholesale trading, digital gold, jewellery, gold-backed lending and retail services. NSE and Augmont linked these capabilities to the systems needed for electronic gold receipts. The first-day data showed active trading alongside narrow price movement.

With inputs from PTI