The National Stock Exchange of India (NSE) recently introduced electronic gold receipts (EGRs) to simplify ownership of gold in digital from through the exchange itself. EGRs are dematerialised securities that represent ownership of physical gold, which shall be stored in SEBI-accredited vaults and held electronically through depositories.

Gold holds a distinct place in India. These receipts are linked to standardised gold and allow market-based price discovery, electronic holding and the flexibility to buy and sell in defined denominations and purity. They can also be converted to and from physical gold through the prescribed process.

In effect, EGRs combine physical backing, regulated storage and electronic trading, while giving market participants a formal route to buy, hold and trade gold. NSE said this mix of standardisation, accessibility and regulation could make EGRs an important route for gold participation in the years ahead. Here is a step-by-step guide to buying NSE EGRs.
 

Opening a demat/trading account

Investors must have a demat account and a trading account with a SEBI-registered stockbroker. Since EGRs are traded on the stock exchange, they cannot be bought without these accounts. If you an investor does not have a trading account, then they can not buy or sell EGRs.

Investors need to complete know-your-customer (KYC) verification by submitting their PAN card, Aadhaar card, bank account details and address proof. Trading access is activated after the verification process is completed.
 

Check if your broker supports EGR trading

EGRs are still a relatively new investment segment and some brokers may still be enabling EGR trading on their platforms. Investors can check this by logging in to their trading app or terminal, searching for EGR symbols listed on the NSE and confirming whether the broker has activated the EGR segment.
 

Search for NSE EGR units

Once access is available, investors can search for EGR contracts based on quantity denominations. NSE EGRs are available in multiple denominations, including 1 kilogram, 100 grams, 10 grams, 1 gram and 100 milligrams, allowing investors to begin with smaller quantities instead of buying larger amounts of physical gold.
 

Place a buy order

EGR prices move in line with prevailing gold prices in domestic and global markets. After selecting the required denomination, investors can enter the quantity, check the live gold-linked market price and place a buy order during trading hours.
 

Receive EGRs in the demat account

After the trade is settled, the purchased EGR units are credited to the investor's demat account. NSE EGRs currently follow a T+1 settlement cycle, which means settlement takes place on the next working day after the trade.
 

Hold, track or sell

As EGRs are exchange-traded, pricing and liquidity remain transparent. Investors can hold them as a long-term gold investment, track live prices on trading platforms and sell units during market hours whenever required.

NSE Electronic Gold Receipts offer a digital route to owning gold while keeping it backed by physical gold stored in regulated vaults. For investors looking for a transparent and exchange-traded alternative to physical gold, EGRs add another option within India's gold investment market.