Market structure EGR Gold

EGRs (Electronic Gold Receipts) on Zerodha

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Electronic Gold Receipts (EGRs) are gold-backed certificates representing 1 gram of 24-karat gold, tradable on NSE / BSE. Introduced by SEBI in 2022-23 to provide a transparent gold-trading mechanism.

Structure

  • Underlying: 1g of 99.5%+ purity gold held in approved vaults.
  • Issuance: Vault authorised entity issues EGRs.
  • Trading: On NSE / BSE.
  • Settlement: Cash; physical delivery available on demand.

Trading on Zerodha

For Zerodha clients:

  • EGR contracts tradable on NSE / BSE if listed.
  • Standard equity-like order types.
  • Settlement T+1.

Comparison with other gold investment

AspectEGRGoldBeES ETFSGB
Underlying1g 99.5%+ goldGold (held in vaults)RBI gold bond
ListedNSE / BSENSE / BSENSE / BSE
Physical deliveryOn demandNo (ETF unit)At maturity (cash, not physical)
CouponNoneNone2.5% per annum
TaxDebt-fund equivalent (per Section 50AA)SameSpecial framework

EGRs are the closest to “owning gold” via a financial instrument; the underlying is actual gold in a vault.

Adoption status

EGR trading volumes are still growing; not yet at the scale of GoldBeES or SGB. Specific listings and liquidity vary.

See also

External references

References

  1. SEBI, EGR framework, sebi.gov.in.
  2. NSE / BSE, EGR trading, exchange websites.

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