How to buy e-gold online through NSEL?

Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts
    How to buy e-gold through NSEL?
    E-gold which is a new avatar of gold, was initiated by National Spot Exchange (NSEL). Well, Indians love gold in any form, as gold is considered a reasonably good investment avenue. So, why not consider e-gold before investing.
     

    E-gold which is in an electronic form of owning gold, can be bought only if you have demat account. A demat account which you hold for stocks does not work here. So, one needs to open demat account with specified NSEL dealers.

    For the list of NSEL members having demat pool account please Click here.

    You will require documents such as PAN, 3 passport photographs, bank proof, and address proof and MICR Cheque copy.

    You can trade the E-Series from 10:00 in the morning to 11:30 in the night on weekdays, and the settlement is done on a T+2 basis.

    Click here to know more about e-gold

    Procedure for registering to initiate trading in E-Series:

    Any retail investor who wishes to trade or invest in E-Series like e-gold, e-silver products of National Spot Exchange Ltd needs to open two accounts.

    • Client Account (trading account/ client code) with a member of NSEL. 
    • Beneficiary Account (demat account) for the commodities segment with an empanelled DP of NSEL. 

    Process of opening a client account:

    • Select a member from the list of members of NSEL. 
    • The list of members enabled for E-Series is updated from time to time. 
    • Fill up the account opening form provided by the member. 
    • Submit the duly filled form to the member along with the other requirements such as proof of identity and proof of address. 
    • Sign the member-client agreement with the member. 

    Process of opening a beneficiary account:

    • Select a Depository Participant (DP) from the list of DPs empanelled by NSEL. 
    • The list of DPs empanelled by the National Spot Exchange is updated from time to time. 
    • Fill up the account opening form provided by the DP. 
    • Submit the duly filled form to the DP along with the other requirements such as proof of identity and proof of address. 
    • Sign the agreement with the DP. 
    Once accounts are opened you can buy gold in a similar manner as u buy equity.

    E-gold can be converted into physical form if an investor wishes. In case, investor wishes to convert electronic gold units into physical gold, he must surrender the electronic units and apply for physical gold.

     

    Click here to know more about converting into physical form

    Taxes and charges:

    • It charges an amount of Rs 100 each as conversion charges of 1 gram coins and Rs. 400 for conversion of 8 gram/10 gram coins. In case of 100 gram coins and one-kg bar, the exchange doesn't charge anything.
    • In addition to these charges, one is required to pay VAT @ 1% throughout the country as well as octroi charges to convert electronic units into physical coins. 
    • If e-gold is held for less than 36 months, then short term capital gain tax is applicable as per slab rates.
    • If e-Gold is held for than 36 months, then e-Gold Capital gain tax applicable at 10%..
    • Storage charge of e-gold which is held in physical form by NSEL is 60 paisa/ e-Gold unit for per month.
    Investment can be made by systematic investment plan also.

    GoodReturns.in

    Read more about: gold
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more