NSE pushes electronic gold

The National Stock Exchange (NSE) has empanelled Augmont Gold Tech, a subsidiary of Augmont Enterprises, as a key partner for promoting electronic gold receipts, aimed at deepening India’s organised gold market.

The strategic partnership is designed to simplify the creation and extinguishment of electronic gold receipts (EGR) and promote their trading on the exchange, NSE said in a statement on Saturday.

Under the arrangement, Augmont will provide technical and on-ground support for the development of the EGR product, drawing on its experience across the gold value chain.

The partnership will facilitate conversion of physical gold into EGRs and their subsequent conversion back into physical gold within the regulated ecosystem.

EGRs are dematerialised securities representing ownership of physical gold stored in SEBI-accredited vaults and held electronically through depositories. Each receipt is fully backed by physical gold and can be traded on the exchange.

The exchange said the partnership is aimed at strengthening the gold trading ecosystem by improving price discovery and market participation while enhancing transparency and trust among jewellers, refiners, traders and institutional investors.

“By combining NSE’s robust technology and liquidity framework with Augmont’s rich experience and on-the-ground presence across the gold value chain, we are simplifying the creation and extinguishment of EGRs and making gold investment more accessible to investors across the nation,” said NSE Chief Business Development Officer Sriram Krishnan.

Augmont Enterprises Whole-Time Director Ketan Kothari said, “We aim to make the conversion between physical and electronic gold simpler, faster and more transparent for the trade and investors alike.”

EGRs also allow investors to participate in the gold market in smaller denominations, while offering liquidity and flexibility similar to other financial instruments held in demat form, NSE said.