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Sebi Eyes EGR Framework Review Amid Low Traction
20 Dec, 2025
Summary
- Electronic Gold Receipts framework needs review, says Sebi Chairman.
- Lack of investor awareness hinders regulated gold product adoption.
- Sebi warns investors against unregulated digital gold platforms.
India's Electronic Gold Receipts (EGR) framework may undergo a review as it has not achieved its intended adoption, according to Sebi Chairman Tuhin Kanta Pandey. Speaking at a recent event, Pandey highlighted that EGRs were designed to establish India as a global hub for gold price discovery. However, challenges, including potential Goods and Services Tax (GST) issues, have hampered their success.
Pandey urged the industry to prioritize investor education, encouraging them to exclusively engage with regulated gold products. This includes commodity derivatives, Gold ETFs, and EGRs, all of which offer investor protection. The Securities and Exchange Board of India (Sebi) has recently issued warnings against various online platforms marketing 'Digital Gold' or 'E-Gold Products,' as these operate independently of Sebi's regulatory oversight and carry significant risks.
Furthermore, Pandey touched upon the broader commodity market pressures, noting geopolitical factors, sanctions, and weather shocks. He stressed the importance of robust commodity derivatives markets for managing price volatility and establishing fair valuations. Sebi has been implementing reforms to enhance business ease, such as reducing the delivery period for commodity transactions.
