What is Sebi's stance on Electronic Gold Receipts (EGRs)?

Sebi Chairman Tuhin Kanta Pandey suggested that the EGR framework may need a review due to its lack of traction.

Why is investor education important for gold products in India?

Investor education is crucial to ensure people engage with regulated gold products like EGRs and ETFs, avoiding unregulated digital gold schemes.

What warnings has Sebi issued regarding digital gold?

Sebi has warned investors against unregulated digital or online platforms offering 'Digital Gold' products, as they are outside Sebi's purview.

Home / Business and Economy / Sebi Eyes EGR Framework Review Amid Low Traction

Sebi Eyes EGR Framework Review Amid Low Traction

20 Dec

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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.

Sebi Eyes EGR Framework Review Amid Low Traction

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.