SEBI Unveils Framework For Mobilising Gold Exchanges
NDTV
SEBI has unveiled a framework for operating gold exchanges which will facilitate trading of yellow metal in the form of electronic gold receipts
Securities and Exchange Board of India (SEBI) has unveiled a framework for making operational gold exchanges which will facilitate trading of yellow metal in the form of electronic gold receipts (EGRs).
The stock exchanges interested in EGRs may apply to SEBI for approval of trading in the new segment, the regulator said in a circular.
The bourses can launch contracts with different denomination for trading or conversion of EGR into gold. Under the new framework, the entire transaction has been divided into three tranches - creation of EGR, trading of EGR on stock exchange and conversion of EGR into physical gold.
A common interface will be developed by depositories, which will be made accessible to all the entities - vault managers, depositories, stock exchanges and clearing corporations.
