- National Stock Exchange partners with Augmont Gold Tech for electronic gold receipts initiative
- Physical gold in SEBI-accredited vaults can be converted into tradable electronic receipts
- Electronic Gold Receipts enable smaller denomination trading and wider market participation
The National Stock Exchange is looking to expand the organised trading of gold by bringing Augmont Gold Tech on board as a key partner for its electronic gold receipts initiative.
Augmont, a subsidiary of Augmont Enterprises, will support the exchange in developing the Electronic Gold Receipts ecosystem. The partnership will cover the movement of gold between physical and electronic formats and support wider participation in EGR trading.
Under the proposed framework, physical gold stored in SEBI-accredited vaults can be represented through electronic receipts. These receipts can then be held in demat form and traded on the exchange.
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The arrangement gives investors a regulated route to participate in the gold market without dealing with physical bullion at every stage. EGRs can also be issued in smaller denominations, potentially widening access to exchange-based gold investments.
For the broader bullion industry, the partnership could help bring more transactions into an organised market structure. NSE said the initiative is expected to support better price discovery while improving transparency and participation among jewellers, refiners, traders and institutional investors.
Augmont will contribute technical expertise and operational support based on its presence across different parts of the gold value chain.
NSE Chief Business Development Officer Sriram Krishnan said the partnership combines the exchange's technology and liquidity infrastructure with Augmont's industry experience.
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Augmont Enterprises Whole-Time Director Ketan Kothari said the company aims to simplify the conversion between physical and electronic gold while improving transparency for investors and market participants.
The initiative is part of NSE's efforts to develop the EGR segment and create a more integrated electronic market for India's physical gold ecosystem.
(With PTI inputs)
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