Framework for operationalizing the Gold Exchange in India

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....ctronic gold receipts" as 'securities' under Section 2(h)(iia) of the Securities Contracts (Regulation) Act 1956, and vide Gazette notification dated December 31, 2021, SEBI (Vault Managers) Regulations, 2021, have been notified, paving the way for operationalizing of Gold Exchange. The framework for the proposed Gold Exchange is listed at Annexure 1. 3. The stock exchange/s desirous of trading in electronic gold receipts (EGRs) may apply to SEBI for approval of trading of EGRs in new segment. 4. The Circular shall come into force with immediate effect. 5. The Exchanges are advised to: 5.1. take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same, 5....

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....on of EGR into Physical Gold 4. Details of transactions in first tranche are as follows: 4.1. Creation of Common Interface: A common interface will be developed by Depositories, which will be made accessible to all the entities i.e., Vault Managers, Depositories, Stock Exchanges and Clearing Corporations. 4.2. Supply of the physical gold: 4.2.1. The supply of the physical gold, to be converted into EGR, shall be the fresh deposit of gold, coming into the vaults, either through imports or through stock exchange/s accredited domestic refineries. 4.2.2. The existing deposit of gold lying in the vaults, which meets the aforesaid criteria and has never been out of the vaulting infrastructure, can be conside....

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..... The stock exchanges shall allow trading of the EGR's on continuous basis. Further, the Depositories shall share information pertaining to the creation of EGR/s, with the stock exchanges and clearing corporations on a periodic basis. The details of such periodicity shall be issued by SEBI in due course. 5.2. The Clearing Corporation shall settle the trades executed on the stock exchange/s, by way of transferring EGR/s and cash to the buyer and seller of EGR/s, respectively. 6. Third Tranche → Conversion of EGR into Physical Gold are as follows: 6.1. Beneficial owner of EGR intending to obtain physical gold against the EGR/s shall request the Depository for the same. The Depository, in turn shall forward such reque....

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....Manager, can be withdrawn from different location of same or different Vault Manager (depending on the availability of physical gold). 9.3. The aforementioned provisions would allow the Depository to facilitate withdrawal of physical gold from the preferred vault location of the buyer, to the extent possible, and possibly, save upon the cost of withdrawal of gold from the vaults. 10. Withdrawal Center: To increase the reach of Gold Exchange, all existing branches of vault managers may be allowed as 'collection and/or withdrawal center', which meets the safety standards, as specified by the SEBI. The details of withdrawal centers shall be available on the websites of depositories and vault managers. 11. Storage (vaulting) and ....