From vault to demat: Know everything about NSE's Electronic Gold Receipts

The National Stock Exchange (NSE) is stepping up efforts to deepen participation in India's gold market through Electronic Gold Receipts (EGRs), a new exchange-traded instrument that allows investors to buy, sell and hold gold in demat form while retaining the option to convert holdings into physical gold.

The exchange launched its EGR segment on May 4, 2026, positioning the product as a regulated alternative to traditional gold ownership and an avenue for transparent price discovery in one of the world's largest gold-consuming markets.

India's annual gold demand stands at around 710 tonnes, with a significant portion met through imports. NSE believes EGRs can modernise the gold ecosystem by combining exchange-based trading, electronic ownership, and standardised gold products under a regulated framework.

What are Electronic Gold Receipts?

An Electronic Gold Receipt is a dematerialised security representing ownership of physical gold stored with SEBI-registered vault managers. Unlike Gold ETFs, which track gold prices through a fund structure, EGRs represent direct ownership of underlying physical gold and can be converted into physical metal through a prescribed withdrawal process.

Every EGR is backed by corresponding physical gold stored in regulated vaults. Depositories oversee the creation, holding, transfer, and extinguishment of EGRs, while vault managers are responsible for storage and reconciliation of the underlying gold.

Trading denominations as small as 100 milligrams

To broaden retail participation, NSE has introduced EGR contracts across multiple denominations and purity standards.

Investors can trade gold in 999 and 995 purity categories in denominations of:

• 100 grams


• 10 grams


• 1 gram


• 100 milligrams

The exchange says the product structure enables investors to start with small quantities and gradually build gold holdings without concerns related to storage, security or handling.

How the EGR ecosystem works

Physical gold meeting NSE specifications can be deposited with a SEBI-registered vault manager. Following verification and due diligence, corresponding EGR units are credited to the depositor's demat account through the depository framework.

Once credited, EGRs can be traded on the NSE platform similar to any other listed security. Trades are settled on a T+1 rolling settlement basis through NSE Clearing Ltd (NCL).

Investors wishing to take physical delivery can submit a withdrawal request through their depository participant. After verification, the vault manager releases the gold and the corresponding EGR units are extinguished from the investor's demat account.

Extended Trading Hours

The NSE EGR segment operates from 9 am to 11:30 pm or 11:55 pm, depending on the US daylight saving period, providing participants with longer trading windows than conventional equity market hours.

The product is open to a wide range of participants, including retail investors, jewellers, bullion traders, refiners, institutional investors and foreign portfolio investors (FPIs).

Focus on transparency and standardisation

According to NSE, gold deposited for EGR creation must comply with LBMA Good Delivery Standards or India Good Delivery Standards. Purity certification is issued by exchange-accredited refiners, while vault managers are responsible for maintaining the quality and weight of stored gold.

The exchange says EGRs offer several advantages over traditional gold ownership, including transparent exchange-driven pricing, dematerialised holding, regulated infrastructure and nationwide price discovery.

Incentive for early adoption

To encourage participation, NSE has waived exchange transaction charges on EGR trades for the first six months of operations, from May 4, 2026 to November 3, 2026.

Market participants will, however, continue to incur brokerage charges, depository fees, storage costs, withdrawal charges and applicable taxes.

NSE's bigger gold market ambition

The launch of EGRs marks NSE's attempt to create a more organised and transparent gold marketplace by integrating exchanges, clearing corporations, depositories, refiners, and vault managers into a single regulated ecosystem.

With the ability to trade gold electronically in denominations as small as 100 milligrams while maintaining the option of physical conversion, EGRs could emerge as a new channel for retail and institutional participation in India's vast gold market.