Framework for operationalizing the Gold Exchange in India
SEBI has released a framework for operationalization of Gold exchanges in India. This is in furtherance to SEBI (Vault Managers) Regulations, 2021 which have already been notified for creation of electronic gold receipts (EGRs), which are electronic receipts issued on the basis of a deposit of physical gold. The gold exchange would be a national platform for buying and selling EGRs issued against physical gold. Investors can trade in EGRs on stock exchanges and the proposed gold exchange. The transaction in a gold exchange has been divided into three parts—conversion of physical gold into EGR, trading of EGR on a stock exchange, and conversion of EGR into physical gold. EGRs shall have same trading features as available to “securities” defined under SCRA, 1956. SEBI has also brought in fungibility and interoperability between vault managers for the ease of investors and would regulate the entire ecosystem of the proposed gold exchange.
