Trading features pertaining to the Electronic Gold Receipts (EGR) segment

February 14, 2022

The Managing Directors / Chief Executive Officers
All Recognized Stock Exchanges and Clearing Corporations
All Registered Depositories
All Registered Vault Managers

Dear Sir / Madam,

1. 1. SEBI Board in its meeting held on September 28, 2021 approved the framework for Gold Exchange and SEBI (Vault Managers) Regulations, 2021.

2. Government of India vide Gazette notification S.O. 5401 (E) dated December 24, 2021, has notified “electronic 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 operationalization of Gold Exchange. Pursuant to the said notifications, a circular dated January 10, 2022 was issued specifying the framework for operationalizing the Gold Exchange in India.

3. In continuation of the aforesaid circular and with a view to specifying the details of various aspects of the trading of EGR on the recognized stock exchange/s, guidelines covering the following subjects are prescribed in the Annexures to this circular.

(i) Trade Timings – Annexure A
(ii) Transaction charges by stock exchanges – Annexure B
(iii) Call Auction in Pre-open session – Annexure C
(iv) Block and Bulk Deal – Annexure D
(v) Price Bands – Annexure E
(vi) Investor Protection Fund (IPF) & Investor Service Fund (ISF) – Annexure F
(vii) Unique Client Code (UCC) – Annexure G

4. This Circular shall come into force with immediate effect.

1. 5. The Exchanges shall :
   2. 5.1.take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same,
   4. 5.2.bring the provisions of this circular to the notice of the members of the Exchange and also to disseminate the same on their website,
   6. 5.3.communicate to SEBI, the status of the implementation of the provisions of this Circular.

6. This Circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.

7. This circular is issued with the approval of competent authority.

8. This Circular is available on SEBI website www.sebi.gov.in under the category “Circulars” and “Info for Electronic Gold Receipts”.

Yours faithfully,

Naveen Sharma
General Manager
Division of Market Policy

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