BSE creates history with India's first successful EGR transaction
Mumbai: October 27, 2022: BSE, India's leading and world's fastest Stock Exchange is pleased to announce the successful creation, transaction, and settlement of Electronic Gold Receipts (EGRs). The first transaction took place on 24 October 2022 during the muhurat trading session, was successfully settled on T+1 day, as investors benefitted from access to liquidity using the newly created EGRs. BSE's seamless trading platform, integrated with a robust clearing framework of ICCL for EGR have proved beneficial for market participants. The exchange also announced that over 100 members have been successfully onboarded on the newly launched EGR segment.
On the occasion of muhurat trading, BSE launched two new EGR products of 995 and 999 purity and trading will be in multiples of 1 grams and deliveries in multiples of 10 grams and 100 grams thus offering new solutions for investors, Jewellers, and institutions to invest in Gold. The transaction highlights the nature of products BSE aims to bring to the Indian Capital Markets – relevant, innovative, and highly accessible to key participants.
Shri Sameer Patil, Chief Business Officer of BSE said "By launching EGRs, BSE is delighted to offer greater choice to investors seeking to invest in gold. This reflects our commitment to continuously facilitate access to high-quality investment-based products and services for our stakeholders."
EGRs offers the participants a safe and convenient avenue to invest in gold and comes at a critical time to support Bullion Industry as it grows in scale. BSE expects greater trades and liquidity in the days ahead as it continues to educate the market and onboard new members.
In September 2022, BSE had received final approval from the capital markets regulator Securities and Exchange Board of India (SEBI) for introducing the EGR segment on its platform. The exchange had received in-principal approval from SEBI in February after which the exchange conducted several mock trading in the test environment for exchange members to facilitate trading in EGRs. Since 2015, the BSE has been working collaboratively with the regulators and market participants, across India, to gain an in-depth understanding into the commercial and technical nuances of a segment that is still in the preliminary stages of its maturation.
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 demutualized entity, with a broad shareholder. 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 Largest Mutual Funds Distribution Infrastructure. On October 1, 2018, BSE launched commodity derivatives trading in Gold, Silver, Copper, Oman Crude Oil Guar Gum, Guar Seeds, Almond & Turmeric.
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 nation-wide 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 ("ICCL") was incorporated in 2007 as a wholly owned subsidiary of BSE Ltd. ("BSE"). ICCL carries out the functions of clearing, settlement, collateral management and risk management for various segments of BSE such as equity cash market (including BSE SME, offer for sale, securities lending & borrowing, corporate bonds and government securities), equity derivatives segment (stock & index futures and options), currency derivatives (currency (including cross-currency) futures and options, interest rate futures and options), commodity derivatives and debt products, including tri-party repo products. Post the introduction of interoperability, in 2019, ICCL also provides clearing and settlement services for trades executed in the interoperable segments (viz., equity cash market, equity derivatives segment and currency derivatives segment) of BSE as well as other exchanges.
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 framework issued by the Ministry of Finance, Government of India and SEBI. BSE Investor Protection Fund is responsible for creating Capital markets related awareness among the investor community in India.
India International Exchange (IFSC) Limited (India INX) is India’s first international exchange in International Financial Services Centre (IFSC) located at the Gujarat International Finance-Tec City (GIFT City). India INX is a subsidiary of BSE Limited. The Exchange was inaugurated by Hon’ble Prime Minister of India, Shri Narendra Modi, on Jan 09, 2017, and commenced its operations from Jan 16, 2017.
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