April 11, 2022
The Managing Directors / Chief Executive Officers
All Stock Exchanges and Clearing Corporations
Sir / Madam,
- 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, various circulars were issued specifying the framework for operationalizing the Gold Exchange in India.
3. In continuation to the aforesaid circulars, the risk management framework applicable to the EGR segment on the recognized Stock Exchange/s is prescribed in Annexure A to this circular.
4. This circular shall come into force with immediate effect.
5. This circular is issued in exercise of the 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.
6. This circular is issued with the approval of competent authority.
7. This circular is available on SEBI website at www.sebi.gov.in under the category “Circulars” and “Info for Electronic Gold Receipts”.
Yours faithfully,
Priyanka Mahapatra
Deputy General Manager
Division of Risk Management
To Read More….
Click the link below….