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Sebi puts in place framework for operationalizing gold exchange
January 11, 2022
Capital business sectors controller Sebi on Monday came out with a structure for operationalizing the gold trade, wherein the yellow metal will be exchanged the type of electronic gold receipts (EGRs).
The stock trade desirous of trading EGRs might apply to Sebi for endorsement of exchanging the new section, the controller said in a roundabout.
The bourses can send off agreements with various section for trading or change of EGR into gold. Under the new structure, the whole trade has been partitioned into three tranches production of EGR; exchanging of EGR on stock trade and transformation of EGR into actual gold.
A typical connection point will be created by stores, which will be made open to every one of the elements vault chiefs, safes, stock trades and clearing corporations.
The new system will come into power with prompt impact, the Securities and Exchange Board of India (Sebi) said.
This comes after the public authority, through a warning on December 24, announced “electronic gold receipts” as ‘protections’ under the Securities Contracts (Regulation) Act 1956.
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