The Wealth Company enters NSE EGR segment: How investors can buy digital gold

The Wealth Company, part of the Pantomath Group, has become the first asset management company (AMC) to sign up in principle for the National Stock Exchange’s (NSE) Electronic Gold Receipts (EGR) segment, subject to regulatory approvals. The development marks a notable step for India’s gold investment ecosystem as exchanges seek to move gold transactions into a more regulated, transparent and exchange-traded structure.

NSE Managing Director and CEO Ashish Kumar Chauhan said participation by asset managers could help create scale and strengthen investor confidence in the EGR ecosystem. The initiative aims to support the broader financialisation of gold by bringing investment activity into formal market infrastructure.

India is among the world’s largest consumers of gold, but a large share of purchases still happens through local physical markets. EGRs are being positioned as an alternative route that combines physical gold backing with the convenience of financial market infrastructure.

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Electronic Gold Receipt

An Electronic Gold Receipt, or EGR, is a digital proof of ownership of physical gold. Every EGR unit is backed by actual physical gold stored securely with a SEBI-registered vault manager.

The concept emerged under SEBI’s Gold Exchange initiative, announced in 2022, which aimed to create a national marketplace for gold transactions. Instead of purchasing physical bars or coins directly, investors can purchase electronic receipts that represent ownership of gold and hold them in demat form.

These receipts are traded on NSE’s dedicated EGR segment in a manner similar to stocks or bonds, allowing investors to buy and sell gold-backed instruments electronically.

How does EGR trading work?

The EGR process begins when physical gold is deposited with a SEBI-registered vault manager. Following due diligence and verification, the vault manager creates electronic receipts that are credited into the owner’s demat account through the depository framework.

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NSE then provides the trading platform, while NSE Clearing Ltd handles settlement and risk management processes. The exchange applies safeguards such as value-at-risk margins, mark-to-market mechanisms and settlement controls.

EGRs can either be held for investment purposes or converted back into physical gold at a later stage. Investors are not required to take delivery immediately and can continue trading EGRs like other securities.

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Who can invest in EGRs?

According to NSE, retail investors, jewellers, bullion traders, refiners, institutional participants and Foreign Portfolio Investors (FPIs) can participate in EGR trading through exchange-registered members.

Importantly, investors do not need to already own physical gold to participate. They simply require a demat account and access through a broker enabled for NSE’s EGR segment.

NSE currently offers 999 purity and 995 purity options, with denominations ranging from 100 milligrams to 1 kilogram, making the product accessible to both small and large investors.

Trading is available from Monday to Friday between 9 am and 11:30 pm, with settlement taking place on a T+1 basis.

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Another feature attracting investor interest is the "one nation, one price" concept, which aims to standardise pricing and improve transparency compared with fragmented physical gold markets.

As institutional participation increases, EGRs could gradually emerge as a new route for gold ownership, combining the familiarity of physical gold with the convenience of digital and exchange-based investing.