Mumbai: BSE Ltd has entered into an agreement with MMTC-PAMP India Private Limited to promote and expand the Electronic Gold Receipts (EGRs) market in India. The partnership aims to improve market participation, strengthen bullion market infrastructure and enable smoother conversion between physical gold and electronic gold receipts.
The collaboration will focus on joint initiatives, stakeholder engagement, knowledge sharing and market development programmes to improve transparency, efficiency and accessibility in India’s exchange-traded gold market.
The partnership brings together BSE’s exchange platform and MMTC-PAMP’s expertise in gold and silver refining, quality assurance and bullion-related processes. It is intended to encourage wider adoption of EGRs and support the development of a more organised and transparent gold trading ecosystem.
BSE and MMTC-PAMP to Expand Electronic Gold Receipts Market
Under the agreement, BSE and MMTC-PAMP will work together to strengthen the adoption of Electronic Gold Receipts across India’s gold value chain. The initiative will focus on improving market awareness, encouraging participation from industry stakeholders and supporting the growth of exchange-traded gold products.
BSE will facilitate the launch of EGR contracts in multiple denominations and support the conversion of physical gold into EGRs and vice versa, subject to applicable laws and regulatory requirements.
MMTC-PAMP will contribute its expertise in bullion refining, assaying, EGR creation, redemption, delivery and related processes. The collaboration is expected to help improve market accessibility and encourage participation from investors, jewellers, refiners, traders and other stakeholders.
What Are Electronic Gold Receipts (EGRs)?
Electronic Gold Receipts are securities regulated by the Securities and Exchange Board of India (SEBI) that represent physical gold deposited in designated vaults. They allow investors to hold gold in dematerialised form in their demat accounts and trade it through an exchange-based system.
EGRs offer trading, clearing and settlement features similar to those available for other securities in India’s capital markets. By connecting physical gold with the financial market, the system aims to make gold ownership and trading more transparent and efficient.
India is among the world’s largest consumers and holders of gold. EGRs provide a regulated framework for holding, transferring and trading gold while supporting standardisation, traceability and improved price transparency.
BSE Aims to Improve Physical-to-Electronic Gold Convertibility
BSE was the first exchange in India to launch trading in Electronic Gold Receipts. Its EGR platform currently offers trading units of 100 milligrams, 1 gram and 10 grams, with gold fineness levels of 999 and 995.
Through the partnership, BSE aims to strengthen the link between physical bullion and electronic gold trading. The exchange will use its trading platform and ecosystem initiatives to support market development and smoother conversion between physical gold and EGRs.
The BSE EGR platform connects various participants across the gold value chain, including vault managers, depositors, investors, jewellers, refiners and traders. It is designed to provide a unified, regulated environment for gold ownership and trading.
BSE-MTTC-PAMP Partnership to Support Gold Market Transparency
The collaboration aims to improve transparency, efficiency and participation in India’s bullion market through a regulated, exchange-based framework.
The key objectives include:
- Promoting gold financialisation: Encouraging the conversion of physical gold into financial assets and supporting the recycling and mobilisation of domestically held gold.
- Expanding regulated market participation: Encouraging a shift from informal gold transactions towards a more organised and transparent market.
- Improving transparency and traceability: Strengthening integrity and standardisation across the gold value chain.
- Supporting domestic price discovery: Helping develop a stronger domestic gold market and supporting India’s ambition to become a leading global bullion trading hub.
- Broadening investor access: Providing investors with a regulated exchange-traded avenue for holding and trading gold in electronic form.
The initiative is also aligned with India’s broader objective of making better use of domestic gold holdings, potentially reducing dependence on gold imports over time and strengthening the country’s role in global bullion markets.
BSE and MMTC-PAMP Leadership Highlight EGR Market Potential
Commenting on the partnership, Sundararaman Ramamurthy, Managing Director and CEO of BSE, said Electronic Gold Receipts represent an important step towards building a modern, transparent and efficient gold ecosystem in India by connecting physical and financial markets.
He said BSE aims to improve accessibility, deepen liquidity and encourage the financialisation and recycling of domestic gold through its collaboration with MMTC-PAMP. A stronger EGR ecosystem could also improve domestic price discovery and support India’s ambition to become a global bullion trading hub.
Samit Guha, Managing Director and CEO of MMTC-PAMP India Private Limited, said EGRs have the potential to transform how gold is owned, traded and monetised in India.
He highlighted that combining the assurance of physical gold with the efficiency of exchange-based trading could unlock value for investors and the wider bullion ecosystem. Through the partnership, MMTC-PAMP intends to use its refining expertise, quality assurance capabilities and industry network to support EGR creation, broaden market adoption and enhance liquidity.
The collaboration marks a step towards developing a more transparent, efficient and globally competitive gold market in India.
About BSE Ltd
BSE Ltd is Asia’s oldest stock exchange and one of India’s leading market infrastructure institutions. It provides trading and investment platforms across equities, debt instruments, derivatives, mutual funds, commodities and Electronic Gold Receipts. Its benchmark index, the Sensex, is widely tracked by investors and serves as an indicator of the Indian equity market’s performance.
About MMTC-PAMP
MMTC-PAMP India Private Limited is a precious metals refining company and part of the global MKS PAMP Group. Established as a joint venture with MMTC Limited, a Government of India undertaking, it is India’s only London Bullion Market Association (LBMA)-accredited Good Delivery refiner for both gold and silver. The company specialises in precious metals refining and produces gold and silver bars and coins.
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