Mumbai,sep 26
The National Stock Exchange of India has empanelled Augmont Gold Tech as a key partner to simplify the conversion of physical gold into Electronic Gold Receipts (EGRs) and promote trading in digital gold instruments, as part of efforts to deepen India’s formal gold market.Under the partnership, Augmont, a subsidiary of Augmont Enterprises, will provide technical and on-ground support for the development of the EGR product and help strengthen the digital framework for its creation and extinguishment, NSE said in a press release.The partnership is expected to make it easier to convert physical gold into EGRs and convert the receipts back into physical gold within the regulated ecosystem. NSE said the move would support price discovery, improve market participation and strengthen trust among jewellers, refiners, traders and institutional investors.EGRs are dematerialised securities representing ownership of physical gold stored in SEBI-accredited vaults and held electronically through depositories.
Each receipt is backed by physical gold and can be traded on the exchange, allowing gold to be integrated into the formal financial system.”The empanelment of Augmont marks an important step in building a deep and vibrant ecosystem for Electronic Gold Receipts,” Sriram Krishnan, Chief Business Development Officer at NSE, said.He said the partnership would simplify the creation and extinguishment of EGRs and make gold investment more accessible to investors across the country. NSE expects the partnership to support greater participation in EGRs and position gold as a modern, integrated asset class within capital markets.Augmont Whole-Time Director Ketan Kothari said the company would combine its experience in refining, sourcing and distribution of gold with NSE’s technology and market infrastructure to make the conversion between physical and electronic gold “simpler, faster and more transparent”.
