March 30, 2023

New Delhi. Trading in gold is about to get easier. Good news has come for the businessmen trading in Paper Gold. ITC refund will not get stuck on trading in Electronic Gold Receipts. According to sources, to promote investment and trading through EGR i.e. Electronic Gold Receipts, the Finance Ministry is considering relaxing the rules related to GST.

Explain that the electronic gold receipt will help in ascertaining the effective and transparent price of this premium metal. EGR ie Electronic Gold Receipt will be like other securities. Its trading clearing and settlement can also be done like other securities.

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Now only gold ETF is traded
Currently, only gold derivatives and gold ETFs are traded in India. In this, convert the gold commodity into security EGR. Whoever has a responsible source of physical gold, will get that gold deposited in the vault. There he will get an electronic gold receipt. Which he will keep on the exchange for sale and purchase.

Trending will be based on the price of gold
Now gold will be traded on the basis of prices and demand. This EGR will be available to investors on the exchange. The way investors buy and sell shares on BSE, they will be able to trade these receipts of gold. Where investors do not need to take delivery for buy-sell. Investors will be able to keep this EGR in their demat account.

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Explain that market regulator SEBI (SEBI) had given permission to BSE to start Electronic Gold Receipt (EGR) on its platform. After which BSE started it. BSE has introduced two new products of 95 and 999 purity. Trading will be in multiples of 1 gram and delivery will be in multiples of 10 grams and 100 grams.

waiting for the green signal
Those trading through EGRs will get relief. No need to wait till conversion for ITC refund claim. The Finance Ministry is considering SEBI’s proposal regarding GST rules. After the Finance Ministry’s green signal, it will be sent to the GST Council for final approval. To promote Gold Monetization, SEBI has allowed trading in EGRs. After BSE, NSE can also allow trading in EGRS soon.

Tags: Golden, Gold ETFs, gold investment

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