NSE’s Electronic Gold Receipts: What are EGRs and what is in them for gold buyers?

India is one of the world’s biggest gold importers. Indians buy gold for consumption and investment. Gold can be bought in various forms, including jewellery, bullion, ETFs, gold MFs, and digital gold. On 4 May 2026, the National Stock Exchange launched Electronic Gold Receipts (EGRs), another way to buy gold. In this article, we will understand what EGRs are, how they can be bought and sold, and whether one should buy them.

What is an EGR?

An Electronic Gold Receipt is a digital asset that represents ownership of gold. It is just like any other digital asset that represents ownership of an underlying asset. For example, when you own shares of a particular company, they reflect in your demat account. Similarly, when you own EGR units, they reflect in your demat account.

EGR units held in a demat account can be traded through the stock exchanges (for example, NSE), just like shares. You can buy and sell EGR units. The EGR products traded on the NSE include the following.

The above table shows that an individual can buy gold of 999 or 995 purity. A unit can start from as low as 100 milligrams to as high as 1 kg. With a unit starting at 100 milligrams, it is within reach of most individuals across income groups.

When an individual buys an EGR unit, it is backed by an equivalent quality and quantity of physical gold stored in a vault with a SEBI-registered Vault Manager.

How are EGRs different from other gold products?

Some ways in which EGRs are different from other gold products include the following.

Creation of EGRs

If an individual owns physical gold, they can get an EGR created through a Vault Manager. The individual must deposit the gold with the Vault Manager, who will then check whether the gold complies with either the LBMA Good Delivery Standard, the India Good Delivery Standard, or any other SEBI-specified standard.

The Vault Manager will create the EGR at the behest of the gold depositor/owner. The EGR will reflect in the demat account of the beneficial owner maintained with a Depository Participant (CDSL or NSDL). An individual can continue holding the EGR in their demat account, sell it through the stock exchange, or convert it into physical gold at any time. Till the time the physical gold is held in storage with the Vault Manager, a storage cost (vaulting charges) applies.

EGR units can be traded on stock exchanges such as the NSE. When an individual buys an EGR unit, the EGR unit will be credited to their demat account, and the amount will be debited from their trading/bank account.

Similarly, when an individual sells an EGR unit, the EGR unit will be debited from their demat account, and the amount will be credited to their trading/bank account. The costs related to EGRs include demat account opening and maintenance charges, brokerage charges for buying and selling units, depository charges, STT and other levies.

Conversion of EGRs into physical gold

The EGR beneficial owner can convert the EGR units into physical gold at any time. They must raise a request with the Depository, which will, in turn, forward the request to the Vault Manager. The Vault Manager will deliver the specified quality and quantity of gold to the beneficial owner and extinguish the corresponding EGR units. The 3% GST applies to the conversion of EGR into physical gold.

The EGRs are interoperable. You may have created the EGR by depositing your physical gold with a Vault Manager in Mumbai. However, you can convert the EGR into physical gold with a Vault Manager in Delhi or any other location.

Gold ETFs and gold mutual fund units give you the option to buy, hold, and sell gold in electronic format. However, you don’t have the option to convert your physical gold into electronic gold, hold it in electronic format for as long as you wish, and convert it back to physical gold. EGRs make it possible for you to convert physical gold into electronic format, hold it in electronic format for as long as you wish, and convert it back to physical gold.

With EGRs, you can hold gold in electronic format without worrying about its quality, purity, storage, or safety. Also, you can sell the electronic gold or convert it to physical gold at any time.

Should you buy EGRs?

EGRs can be purchased in small quantities, starting at 100 milligrams, making them affordable to most people across income categories. The gold purity is assured with 999 or 995. Buying and selling EGR units is easy and convenient through a trading and demat account from anywhere in the country. The markets are open from Monday to Friday from 9:00 AM to 11:30 PM.

EGRs are a SEBI-approved product in which buying and selling take place through SEBI-regulated stock exchanges (BSE and NSE), and the units are held with SEBI-regulated Depositories (CDSL and NSDL), and physical gold is held with SEBI-registered Vault Managers.

When you hold the EGR units, you can ride the upside in the gold prices. If you are holding them for investment purposes, you can sell them and book capital gains at any time. If you are holding them for a financial goal, such as a family wedding, you can convert them into physical gold when the goal is achieved.

With so many features and benefits, retail investors can consider Electronic Gold Receipts based on their needs. However, with EGRs recently launched by NSE, liquidity needs to be watched.

Gopal Gidwani is a freelance personal finance content writer with 15+ years of experience. He can be reached at LinkedIn.