InvestorQ : Can you tell me about the gold exchange that SEBI has proposed?
Tisha Malhotra made post

Can you tell me about the gold exchange that SEBI has proposed?

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Aditi Sharma answered.
3 months ago
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In its board meeting on 28th September, SEBI has approved the broad framework for gold exchange. This gold exchange can be set up under the aegis of stock exchanges and will handle the trading, settlement and clearing of gold. In short, the gold exchange will offer a transparent and price discovery mechanism for physical gold based on a market mechanism. This is likely to benefit trades, arbitrageurs, hedgers and processors.

The gold exchange will conduct gold trading via electronic gold receipts or EGRs which are the rough equivalent of warehouse receipts in commodity trading. The Electronic Gold Receipts or EGRs will be classified as securities under the SCRA. SEBI will be the nodal regulator for the gold exchange. SEBI has also approved vaulting members who will hold gold and issue EGRs against this physical gold.

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