NSE pushes gold-backed EGRs on Dhanteras, sees potential to cut imports by USD 5–6 billion annually

Mumbai (Maharashtra) [India], November 6 (ANI): The National Stock Exchange (NSE) has urged investors to purchase Electronic Gold Receipts (EGRs) instead of physical gold this Dhanteras, adding that India could avoid gold imports worth USD 5–6 billion annually if gold funds held NSE EGRs and lent half of their combined 116-tonne gold holdings.
The stock exchange noted that every EGR traded on the exchange is backed entirely by physical gold recycled and refined in India, with purity levels of 995 or 999, stored in Securities and Exchange Board of India (SEBI)-approved vaults.
"Every NSE EGR is backed 100% by physical gold that has been recycled and refined in India, and stored in SEBI-approved vaults," it said, stressing, "Every NSE EGR you buy is backed by gold recycled in India. Not one gram is imported."
NSE EGRs are backed by domestically sourced gold and can be held in dematerialised accounts, traded in quantities ranging from 10 milligrams to one kilogram, and converted into physical gold.
As per NSE, India imported 721 tonnes worth USD 72 billion in FY26, representing a 24 per cent increase in value over the previous financial year.
"Every 100 tonnes of domestic gold brought into NSE EGR is roughly USD 10 billion off the import bill," the exchange said.
NSE estimated that Indian households hold between 25,000 and 35,000 tonnes of gold, much of which remains outside the formal financial system.
To mobilise these holdings, the exchange is developing an application that will allow households to convert existing gold into EGRs through doorstep collection or authorised collection centres.
The gold will be weighed, assayed and credited to investors' demat accounts based on its pure gold content.
NSE launched its EGR segment on May 4, 2026, and has established an ecosystem comprising refiners, vaults, depositories, clearing infrastructure and market makers.
The segment has recorded 2,781 trades involving 6,197 units, with a traded value of Rs 97.5 crore during the current financial year.
Trading is available from 9 am to 11:30 pm, with settlement on a T+1 basis.
"This Dhanteras, NSE urges investors to buy NSE EGRs instead of physical gold," the exchange said, adding that the initiative could conserve foreign exchange and strengthen India's domestic gold ecosystem. (ANI)