Sebi board clears frameworks for gold, social stock exchanges

The instruments representing gold will be called Electronic Gold Receipts (EGRs) and will be notified as securities; Sebi board also approves proposal to amend delisting framework after open offer

Sebi's board on Tuesday cleared a proposal for setting up a gold exchange wherein the yellow metal will be traded in the form of electronic gold receipts and the bourse will help in having a transparent domestic spot price discovery mechanism.

The instruments representing gold will be called Electronic Gold Receipts (EGRs) and will be notified as securities, Sebi Chairman Ajay Tyagi said at a press conference after the board meeting.

"EGRs will have the trading, clearing and settlement features akin to any other securities," he said.

Any recognised stock exchange, existing as well as new, can launch trading in EGRs in a