MANU/SSMD/0008/2022

Ministry : Securities and Exchange Board of India

Department/Board : Commodity Derivatives Market Regulation Department

Circular No. : SEBI/HO/CDMRD/DMP/P/CIR/2022/36

Date : 28.03.2022

Notification/ Circulars Referred : Circular no. SEBI/HO/CDMRD/DMP/CIR/P/2022/07 dated January 10, 2022 MANU/SDEP/0002/2022;Circular no. SEBI/HO/CDMRD/DMP/P/CIR/2022/19 dated February 14, 2022 MANU/SDEP/0004/2022

Citing Reference:
Circular no. SEBI/HO/CDMRD/DMP/CIR/P/2022/07 dated January 10, 2022 MANU/SDEP/0002/2022  Referred

Circular no. SEBI/HO/CDMRD/DMP/P/CIR/2022/19 dated February 14, 2022 MANU/SDEP/0004/2022  Referred

The Managing Directors/Chief Executive Officers
All Recognized Stock Exchanges

Dear Sir/Madam,

Product specifications pertaining to the Electronic Gold Receipts segment in India

1. SEBI vide Circular no. SEBI/HO/CDMRD/DMP/CIR/P/2022/07 dated January 10, 2022, has issued framework for operationalizing the Gold Exchange in India and vide SEBI Circular no. SEBI/HO/CDMRD/DMP/P/CIR/2022/19 dated February 14, 2022, has issued Standard Operating Guidelines for the Vault Managers and Depositories in Electronic Gold Receipts (EGR) segment.

2. The framework, inter-alia, states that the entire transaction in EGR segment has been divided into three tranches. In tranche 1, physical gold will be converted into EGR; in tranche 2, EGR shall be traded on stock exchanges; and in tranche 3-EGR can be converted into physical gold. The framework also states that stock exchanges may launch contracts with different denomination for trading and/or conversion of EGR into gold.

3. In this regard, the stock exchanges may launch products/contracts subject to complying with the following guidelines:

3.1. Any person desirous of dealing in EGR on the stock exchange shall deposit the gold with the registered Vault Managers, in the 'deposit unit', which shall be specified by........