SEBI issues Framework for operationalizing the Gold Exchange in India

Jan 11, 2022 | by TeamLease RegTech Legal Research Team

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Secretarial ComplianceThe Securities and Exchange Board of India (SEBI) on January 10, 2022 has issued Framework for operationalizing the Gold Exchange in India. This circular shall come into effect from January 10, 2022. 

The following was stated namely: -

• Government of India has declared “electronic gold receipts” as ‘securities’ and has paved the way for operationalizing of Gold Exchange. The stock exchanges desirous of trading in electronic gold receipts (EGRs) may apply to SEBI for approval of trading of EGRs in new segment.

• The Framework for Gold Exchange in India is as follows:-

1. Details of transactions in first tranche are - Creation of Common Interface

2. Product denomination: Stock exchanges may launch contracts with different denomination for trading and / or conversion of EGR into gold

3. Trading features: EGRs shall have same trading features as available to “securities” defined under SCRA, 1956.

• The exchanges are advised to comply with the following steps namely: -

1. Take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same

2. The provisions must be brought to the notice of the members of the Exchange and also to disseminate the same on their website

3. Communicate to SEBI, the status of the implementation of the provisions.


[Notification No. SEBI/HO/CDMRD/DMP/CIR/P/2022/07]


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