The National Stock Exchange of India (NSE) on Monday announced the launch of Electronic Gold Receipts (EGRs), a new segment aimed at improving transparency, efficiency, and formalization in India’s gold market.

According to the exchange, the initiative seeks to bridge the gap between physical gold and financial markets by offering a regulated and technology-driven platform for trading gold.

EGRs are dematerialised securities that represent ownership of physical gold stored in Securities and Exchange Board of India (SEBI)-accredited vaults. These receipts are held electronically through depositories, allowing investors to trade gold in a secure and standardized manner.

Speaking at the IMC Capital Market Conference held at NSE, Managing Director and CEO Ashishkumar Chauhan said the launch marks a significant step toward modernizing gold trading in India. He also acknowledged SEBI’s role in supporting the initiative and compared it to the dematerialization of equity shares in the 1990s.

Market experts believe that EGRs could help bring greater transparency and liquidity to the gold market, while also reducing risks associated with physical storage and trading.