New Delhi, India, November 7 (ANI): The National Stock Exchange of India (NSE) registered its highest-ever trading volume in the Electronic Gold Receipts (EGR) segment on the occasion of Dhanteras, marking a major milestone for the country’s organized bullion market.
Festive trading in the exchange-traded instrument reached 227,692 units, establishing a new record for the segment, according to the NSE.
The festive period, traditionally marked by purchases of precious metals, generated fresh demand for EGRs from participants across the country. Active gold suppliers took part in the segment to meet this festive interest, resulting in the significant creation of new receipts on the NSE.
NSE EGRs provide investors with an exchange-traded, dematerialized form of holding gold, combining the intrinsic value of physical gold with the transparency, security and efficiency of the securities market ecosystem.
The instrument operates under regulatory oversight, with standardized clearing and settlement mechanisms, in contrast to several digital gold platforms that operate outside the regulated framework. It also provides a way to mobilize domestically available physical gold, including recycled supplies, into the formal financial system.
Sriram Krishnan, chief business development officer at the NSE, said, “Dhanteras is a celebration of wealth, prosperity and the enduring value of gold. Traditionally, the purchase of physical gold has been an integral part of this celebration. However, the way we own and hold gold is evolving with changing times.”
Krishnan elaborated on the structural shift the product offers to domestic market participants seeking regulated holding mechanisms.
“NSE EGRs offer an opportunity to retain the intrinsic value of gold in a more efficient, transparent and secure form, without necessarily holding the physical metal. NSE EGRs represent an evolution in gold ownership, as the value of gold remains the same irrespective of whether it is held physically or in dematerialized form,” he said.
Krishnan also addressed the macroeconomic aspects of moving physical holdings into exchange-traded formats.
“More importantly, by encouraging the conversion of domestically available and recycled gold into NSE EGRs, we can help mobilize India’s existing gold resources, strengthen the organized gold ecosystem and potentially reduce our dependence on gold imports,” he noted.
Highlighting the response on the trading day, Krishnan pointed to the wider shift in participant preferences across the domestic securities market.
“The record volumes and EGR creation witnessed on Dhanteras are encouraging indicators of the growing acceptance of this instrument. We are certain that more investors and market participants will embrace NSE EGRs as a modern, regulated and efficient way of participating in India’s gold market,” Krishnan added.
The milestone reinforces the NSE’s broader focus on building regulated market products that align with changing investor requirements while developing domestic gold market infrastructure. (ANI)
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