Launch of trade in Electronic Gold Receipt mired in GST tangle
EGRs are like depository gold receipts traded on the stock exchanges and held in demat accounts, just like shares More than two years after it was first announced by the market regulator SEBI, the proposed trading in the country’s first spot physical gold exchange product, Electronic Gold Receipt, remains a non-starter due to taxation issues.
EGRs are like depository gold receipts traded on the stock exchanges and held in demat accounts, just like shares.
In the Union Budget 2021-22, Finance Minister Nirmala Sitharaman announced the setting up of a SEBI-regulated gold spot exchange, and the entire bullion industry welcomed the move as it was operating in a vacuum without regulatory oversight.
Subsequently, in September 2021, SEBI introduced two new investment instruments, EGR and silver ETFs, in its board meeting. It also laid down a detailed guideline for EGR and gave approval to BSE to launch gold EGR on its platform. While silver ETF has taken off nicely, EGR has hit the wall due to the GST issue.
