NSE empanels Augmont as key partner to promote Electronic Gold Receipts

The National Stock Exchange of India (NSE) has empanelled Augmont Gold Tech Private Limited, a subsidiary of Augmont Enterprises Limited, as a key partner for promoting Electronic Gold Receipts (EGRs). The partnership is aimed at simplifying the creation and extinguishment of EGRs and encouraging wider trading in the exchange-based gold product.

Under the partnership, Augmont will use its experience across the gold value chain to support the digital framework for EGRs. It will also provide technical and on-ground support for the development of the product.

The arrangement is expected to facilitate the conversion of physical gold into EGRs and the subsequent conversion of EGRs back into physical gold within the regulated ecosystem.

EGRs are dematerialised securities representing ownership of physical gold stored securely in SEBI-accredited vaults. The receipts are held electronically through depositories and are fully backed by the underlying physical gold. They can also be traded on the exchange.

NSE aims to deepen gold market participation

The partnership is part of NSE's efforts to strengthen the ecosystem around EGRs and bring greater efficiency and transparency to gold trading.

According to NSE, the initiative could support price discovery and increase participation from various stakeholders, including jewellers, refiners, traders and institutional investors.

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Sriram Krishnan, Chief Business Development Officer, NSE, said the empanelment would help simplify the creation and extinguishment of EGRs and make gold investment more accessible.

“The empanelment of Augmont marks an important step in building a deep and vibrant ecosystem for Electronic Gold Receipts. By combining NSE’s robust technology and liquidity framework with Augmont’s rich experience and on-the-ground presence across the gold value chain, we are simplifying the creation and extinguishment of EGRs and making gold investment more accessible to investors across the nation,” he said.

What are Electronic Gold Receipts (EGRs)?

Electronic Gold Receipts (EGRs) are SEBI-regulated digital instruments representing ownership of physical gold stored in accredited vaults. Introduced under SEBI’s Gold Exchange Framework, EGRs allow investors to buy, sell and hold gold in dematerialised form through their demat accounts, eliminating the need for physical storage.

Each EGR represents a specified quantity of physical gold, typically of 995 or 999 fineness, held by a SEBI-registered vault manager. Investors can trade EGRs on recognised stock exchanges and receive T+1 settlement. Unlike physical gold, EGRs avoid concerns over storage, purity and making charges. Investors can also convert their EGR holdings into physical gold, subject to applicable vault charges and 3% GST on withdrawal.

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EGRs offer demat-based gold ownership

Unlike physical gold, EGRs allow investors to hold exposure to vaulted gold electronically in dematerialised form. The structure is designed to provide assured quality and facilitate conversion between physical and electronic gold.

The receipts can also allow investors to participate in the gold market in smaller denominations, while offering liquidity and flexibility similar to other securities held in demat accounts.

Augmont to support EGR ecosystem

Ketan Kothari, Whole-Time Director, Augmont Enterprises, said the company would combine its expertise in refining, sourcing and distribution with NSE's market infrastructure and technology.

“We aim to make the conversion between physical and electronic gold simpler, faster and more transparent for the trade and investors alike,” he said.

The partnership comes as exchanges and market participants seek to integrate gold more closely with India's formal financial market infrastructure. Wider adoption of EGRs could provide an organised mechanism for holding, trading and converting gold within a regulated framework.

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