BSE launches Electronic Gold Receipts for efficient price discovery of gold

Leading stock exchange BSE has launched Electronic Gold Receipt (EGR) on its platform, a move that will help in efficient and transparent price discovery of the yellow metal.

It introduced two new products of 995 and 999 purity during the Muhurat trading on Diwali and trading will be in multiples of 1 gram and deliveries in multiples of 10 gram and 100 gram, the exchange said in a statement.

The announcement came after the exchange last month received final approval from the Securities and Exchange Board of India (Sebi) for introducing EGR on its platform.

BSE in February received in-principle approval from Sebi after which the exchange conducted several mock trading in the test environment for its members to facilitate trading in EGRs.