NSE Introduces Digital Gold Trading Through EGR: Here's What Investors Should Know

The National Stock Exchange (NSE) has introduced Electronic Gold Receipts (EGRs), allowing investors to buy and sell gold digitally just like company shares. The new system offers a secure, transparent, and paperless way to invest in gold while giving investors the option to convert their holdings into physical gold whenever required.

What is EGR?

Electronic Gold Receipt (EGR) is a digital representation of physical gold traded on the stock exchange. Every EGR purchased is backed by an equivalent quantity of physical gold stored in SEBI-approved vaults. Investors can hold EGRs in their Demat accounts and convert them into physical gold at any time.

When Was It Introduced?

SEBI approved the EGR framework in 2021 and issued detailed regulations in 2022. While the Bombay Stock Exchange (BSE) launched EGR trading in October 2022, the National Stock Exchange officially began Gold EGR trading on May 4, 2026.

Gold Available in Different Quantities

Investors can purchase 99.5% and 99.9% purity gold in multiple denominations, including:

- 1 mg.

- 10 mg.

- 1 gram.

- 10 grams.

- 100 grams.

- 1 kilogram.

This allows both small and large investors to participate based on their investment goals.

How to Buy Gold EGR

Gold EGRs can be purchased through any registered stockbroker during NSE trading hours. Investors must have:

- A Demat account.

- A trading account.

- A registered stockbroker.

Once purchased, the EGR units are credited directly to the investor`s Demat account.

Charges Involved

Investors should be aware of the following charges:

- Brokerage fee.

- Demat account charges.

- Vault storage fee.

- Gold verification and delivery charges (when converting to physical gold).

- 3% GST on physical delivery of gold.

Can It Be Converted into Physical Gold?

Yes. Investors can request physical delivery of their gold at any time. After submitting a request, the gold is delivered within a few days, and purity verification certificates are provided if requested.

Benefits of Investing Through EGR

- SEBI-regulated and secure.

- Transparent pricing across India.

- No concerns about storage or purity.

- Digitatal investment with physical delivery option.

- Easy buying and selling through the stock exchange.

- No GST while trading digitally (GST applies only on physical delivery).

How Can Investors Earn Returns?

Like shares, EGRs can be bought when prices are low and sold when prices increase. Investors can benefit from price appreciation without handling physical gold until they choose to take delivery.

Bottom Line

The launch of Gold EGR trading on the NSE marks a major step in modernizing gold investments in India. With secure digital ownership, standardized quality, transparent pricing, and the flexibility to convert digital holdings into physical gold, EGRs offer investors a convenient alternative to traditional gold purchases.