January 10, 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. 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 declared “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 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,
- 5.2.bring the provisions of this circular to the notice of the members of the Exchange and also to disseminate the same on their website,
- 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 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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