Mumbai: The National Stock Exchange of India (NSE) recorded its highest-ever trading volumes in the Electronic Gold Receipts (EGR) segment, marking a significant milestone for the development of India’s organised gold market. The occasion of Dhanteras, traditionally considered an auspicious day for purchasing gold, also witnessed significant creation of NSE EGRs, reflecting growing awareness and acceptance of this innovative instrument.

On the occasion of Dhanteras, NSE witnessed fresh festive demand for NSE EGRs, from across the country, which was met by gold suppliers actively participating in the NSE EGR segment.The trading volumes in the NSE EGR segment reached 2,27,692units, representing a record for the segment.

NSE EGRs provide investors with an exchange-traded, dematerialised form of holding gold, combining the intrinsic value of physical gold with the transparency, security and efficiency of the securities market ecosystem. NSE EGRs also offer an avenue to mobilise the domestically available physical gold, including recycled gold, into the formal financial system.

Additionally, unlike several digital-gold platforms that operate outside the regulated environment, NSE EGRs provide participants with an opportunity to buy, hold and trade gold within a regulated and transparent market ecosystem. With exchange-based trading, standardised clearing and settlement mechanisms, and regulatory oversight, NSE EGRs offer a more structured and secure avenue for participating in the gold market, while strengthening investor confidence.

Commenting on the milestone, Mr. Sriram Krishnan, Chief Business Development Officer, NSE, said: “Dhanteras is a celebration of wealth, prosperity and the enduring value of gold. Traditionally, the purchase of physical gold has been an integral part of this celebration. However, the way we own and hold gold is evolving with changing times. NSE EGRs offer an opportunity to retain the intrinsic value of gold in a more efficient, transparent and secure form, without necessarily holding the physical metal.

NSE EGRs represent an evolution in gold ownership as the value of gold remains the same irrespective of whether it is held physically or in dematerialised form.. More importantly, by encouraging the conversion of domestically available and recycled gold into NSE EGRs, we can help mobilise India’s existing gold resources, strengthen the organised gold ecosystem and potentially reduce our dependence on gold imports.

The record volumes and EGR creation witnessed on Dhanteras are encouraging indicators of the growing acceptance of this instrument. We are certain that more investors and market participants will embrace NSE EGRs as a modern, regulated and efficient way of participating in India’s gold market.”

The milestone achieved on Dhanteras reinforces NSE’s commitment to developing innovative market instruments that cater to evolving investor preferences while contributing to the broader objective of strengthening India’s domestic gold market.