With reference to the Electronic Gold Receipts, consider the following statements:

EGRs are India’s first spot physical gold exchange product.

SEBI has approved Bombay Stock Exchange for EGRs.

Which of the statements given above is/are correct?

Question

The Bombay Stock Exchange (BSE) has received approval from the Securities and Exchange Board of India (Sebi) for its Electronic Gold Receipt (EGR).
EGRs are India’s first spot physical gold exchange product. EGR trading is similar to buying and selling stocks. These are similar to Dematerialized form of share where they are issued in exchange for physical gold (similar to physical form of equity shares).
In India, electronic gold trading happens through gold derivatives or gold exchange-traded funds (ETFs) on stock exchanges.
EGRs are depository gold receipts traded on the stock exchanges. They are held in Demat accounts, just like shares.
The Gold exchange will offer the facility to convert Gold into EGRs, trading in EGRs and reconverting EGRs back to gold.

GKToday Admin · Accepted Answer

Both 1 & 2

The Bombay Stock Exchange (BSE) has received approval from the Securities and Exchange Board of India (Sebi) for its Electronic Gold Receipt (EGR).
EGRs are India’s first spot physical gold exchange product. EGR trading is similar to buying and selling stocks. These are similar to Dematerialized form of share where they are issued in exchange for physical gold (similar to physical form of equity shares).
In India, electronic gold trading happens through gold derivatives or gold exchange-traded funds (ETFs) on stock exchanges.
EGRs are depository gold receipts traded on the stock exchanges. They are held in Demat accounts, just like shares.
The Gold exchange will offer the facility to convert Gold into EGRs, trading in EGRs and reconverting EGRs back to gold.

Current Affairs