MANU/SDEP/0002/2022

Ministry : Securities and Exchange Board of India

Department/Board : Commodity Derivatives Market Regulation Department

Circular No. : SEBI/HO/CDMRD/DMP/CIR/P/2022/07

Date : 10.01.2022

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

Dear Sir/Madam,

Framework for operationalizing the Gold Exchange in India

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,