Sebi issues product specifications related to electronic gold receipts

Sebi on Monday came out with product specifications related to electronic gold receipts.

Last month, the regulator issued standard operating guidelines for vault and warehouse managers in the Electronic Gold Receipts (EGR) sector.



According to Sebi, the EGR will be traded on stock exchanges in a “trading unit” and the same will be determined by the exchanges.

“The stock exchanges will ensure that the trading unit is not less than the tenth part of the corresponding deposit unit,” it said in a prospectus.

For example, when depositing 100 grams of gold bullion, 1 EGR can be generated with 100 grams of trading unit or 10 EGRs at 10 grams per trading unit.

The circular stated that “any person wishing to deal in the Egyptian Stock Exchange must deposit gold with the treasury managers registered in the “depository unit” determined by the stock exchanges.”

Among other things, Sebi said that exchanges should publish adequate information for investors, especially for EGR agencies with different deposit and trading units.

The circular stated that “the details of the deposit unit/withdrawal unit and the trading unit/delivery unit must be clearly specified in the specifications of the exchange contract.”

Under the rules, a complete transaction involving EGRs can be divided into three tranches – converting physical gold into EGR, trading EGR on an exchange and converting EGR into physical gold.

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

Dear Reader,

Business Standard has always strived to provide the latest information and commentary on developments that matter to you and that have broader political and economic implications for the country and the world. Your continued encouragement and feedback on how we can improve our offerings has made our resolve and commitment to these ideals even stronger. Even during these challenging times brought about by Covid-19, we continue our commitment to keeping you updated with trusted news, authoritative opinions and insightful commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more, so we can continue to bring you more quality content. Our subscription form has seen an encouraging response from many of you, who have subscribed to our content online. Further subscribing to our online content can only help us achieve our goals of providing better and more relevant content. We believe in free, fair and credible journalism. Your support with more subscriptions can help us practice the journalism we are committed to.

Support quality press and Subscribe to Business Standard.

digital publisher

Leave a Reply

Your email address will not be published. Required fields are marked *