Electronic Gold Receipts

The concept of Electronic Gold Receipts (EGRs) has been introduced as a new investment option in India. EGRs are a new form of investment that represents gold in electronic form. They are designed to provide the same trading, clearing, and settlement features as other securities that are available in India.

EGRs as a Notified Security Asset

EGRs are officially notified security assets that have the potential to become a preferred investment option for those who are looking to invest in gold. The Bombay Stock Exchange (BSE) was the first stock exchange in India to launch EGRs on its platform.

Boosting Demand for EGRs

To increase demand for EGRs, the Indian Government has announced that it would not levy capital gains tax if physical gold is converted into EGRs or vice versa.

This means that investors who convert their physical gold into EGRs will not be subject to capital gains tax, which could increase investment in the electronic equivalent of gold.

The conversion process must be carried out by a SEBI-registered vault manager to be eligible for this tax exemption.