BSE Completes Technical Preparations To Launch EGRs
BSE completes technical preparations to launch EGRs, which will help in fixing the uniform price of gold across the country.
The leading stock exchange BSE is ready with the technology-enabled to offer Electronic Gold Receipts (EGRs) on its platform. This will help in fixing the uniform price of gold across the country.
BSE Chief Business Officer Sameer Patil said this on Sunday. In this regard, Patil informed that the exchange will get necessary internal approvals.
BSE will apply to the Securities and Exchange Board of India (SEBI) for trading in the new category of securities on its platform.
Earlier on Tuesday, the Board of Directors of SEBI had approved the proposal of gold exchange on its behalf.
In this, the yellow metal will be traded in the form of EGR. This will help in developing a transparent spot price discovery mechanism.
Currently, only gold derivatives and gold ETFs are allowed in India. At the same time, in other countries, there are spot exchanges for the physical business of gold.
The product representing gold will be called Electronic Gold Receipts (EGR) and will be notified as securities.
BSE completes technical preparations: EGR will have trading, clearing, and settlement features like any other securities.
BSE, known for its technical prowess, has been the main proponent of creating a transparent and efficient spot market for gold.
Patil said, “BSE is known for its technical prowess and the exchange has been a prime proponent of creating a transparent and efficient spot market for gold as it is a very important commodity for Indian consumers.”
He also said that the exchange had been preparing to develop technology in this market for a long time and was awaiting in-principle approval to take it forward.
The exchange has made several presentations to the government and regulators on how the process will work.
Stock Market: Sensex, Nifty surge in early trade, Bajaj Finserv, Airtel, M&M shares rise
Domestic stock markets saw a significant rise on Monday. At 09:48 am, the BSE Sensex was trading at a level of 59,259.82 points with a gain of 494.24 points.
NSE Nifty was also trading at a level of 17,659.45 points with a gain of 127.40 points or 0.73 percent. Of the 50 stocks included in the Nifty index, 37 stocks were trading in the green.
On NSE Nifty, shares of Divis Lab, Bajaj Finance, Bajaj Finserv, M&M, and Tata Motors were trading with gains.
Shares of Grasim Industries, UPL, JSW Steel, Eicher Motors, and IOC were trading with red marks on Nifty.
