BSE gets SEBI nod to offer EGR as new segment
BSE Ltd. said it has received final approval from the Securities and Exchange Board of India (SEBI) for the introduction of Electronic Gold Receipt (EGR) segment on its platform. BSE had received the in-principle approval from SEBI for the introduction of EGR in February, after which it had conducted several mock trading sessions for exchange members.
EGRs would cater to all market participants, which means buyers and sellers on the exchange as well as commercial participants such as importers, banks, refiners, bullion traders, jewellery manufacturers, and retailers can participate.
Sameer Patil, Chief Business Officer, BSE said, “We are confident, that the EGR platform will lead to greater assurance in the quality of gold supplied, efficient price discovery, and transparency in transacting. This can create a vibrant gold ecosystem in India by enabling actual fungibility of gold, which is the need of the hour.”
BSE said it was working with all depositaries and vaults to ensure the development of the entire ecosystem around EGR trade, including depositaries, vault managers, traders, bullion dealers, and jewellers to build a transparent channel for gold trade on a national institutionalised platform.