Media Release

BSE receives Final SEBI approval to launch EGR as a new Segment

 

Mumbai, 26th September, 2022: BSE, India's leading and most diverse exchange has received final approval from the capital markets regulator Securities and Exchange Board of India (SEBI) for introducing the Electronic Gold Receipt (EGR) segment on its platform. BSE received in-principle approval from SEBI in February 2022, after which the exchange conducted several mock trading in the test environment for exchange members to facilitate trading in EGRs. EGRs will cater to all market participants, which means that buyers and sellers on the exchange shall include individual investors, as well as commercial participants along the value chain like importers, banks, refiners, bullion traders, jewellery manufacturers, and retailers.

Shri Sameer Patil, CBO - BSE said, "We are extremely thankful to SEBI for giving us the final approval and confidence that we will be able to launch the trading in EGR soon, as gold holds special significance for Indian households. BSE is confident, that the EGR platform will lead to greater assurance in the quality of gold supplied, efficient price discovery, and transparency in transacting. This can create a vibrant gold ecosystem in India by enabling actual fungibility of gold, which is the need of the hour.”

BSE is working with all depositaries and vaults to ensure the development of the entire ecosystem around EGR trade including depositaries, vault managers, traders, bullion dealers, and jewellers so that EGRs will go a long way in building a transparent channel for gold trade on a national institutionalized platform. India is the second largest consumer of gold globally with annual gold demand of approximately 800-900 tonnes and holds an important position in the global markets. India has remained a price-taker in the global markets, and at present, does not play any significant role in influencing the price-setting for the commodity. A platform for EGR infuses transparency in gold spot transactions, enables India to emerge as the price setter, and would eliminate existing market inefficiencies.

About BSE

BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with broad shareholders. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, commodity derivatives, interest rate derivatives, mutual funds, and stock lending and borrowing.

BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE also has a dedicated MF distribution platform BSE StAR MF which is India’s Largest Mutual Funds Distribution Infrastructure. BSE launched commodity derivatives trading in Gold, Silver, Copper, Oman Crude Oil Guar Gum, Guar Seeds, Turmeric, Cotton & Almond.

BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services, and education. It has a global reach with customers around the world and a nationwide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.

Indian Clearing Corporation Limited, a wholly-owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), the associate company of BSE, is one of the two Depositories in India.

BSE has set up an Investor Protection Fund (IPF) on July 10, 1986 to meet the claims of investors against defaulter Members, in accordance with the Guidelines issued by the Ministry of Finance, Government of India. BSE Investors Protection Fund is responsible for creating Capital markets- related awareness among the investor community in India.

Media Contact:

Yatin Padia / Rahul Vyas / Shruti Nitesh

022 2272 8516 / 2272 8472 / 8108000974

Yatin.padia@bseindia.com / Rahul.vyas@indiainx.com / Shruti.nitesh@adfactorspr.com