Trading features pertaining to the Electronic Gold Receipts (EGR) segment
Summary
This circular establishes trading features for Electronic Gold Receipts (EGR) following their notification as securities and the approval of the Gold Exchange framework. It mandates specific guidelines for trade timings, transaction charges, call auctions, block deals, price bands, investor funds, and unique client codes via annexures. Stock exchanges are required to amend bye-laws, disseminate information, and report implementation status to SEBI. This section establishes operational frameworks for block and bulk deals in the EGR segment, including specific time windows, pricing mechanisms, and disclosure obligations. It defines price band limits to ensure orderly trading and outlines the utilization of Investor Protection and Service Funds for the segment. Additionally, it mandates the use of Unique Client Codes (UCC) with strict verification requirements for all transactions.
Text
SEBI Board in its meeting held on September 28, 2021 approved the framework for Gold Exchange and SEBI (Vault Managers) Regulations, 2021.
Government of India vide Gazette notification S.O. 5401 (E) dated December 24, 2021, has notified “electronic gold receipts” as ‘securities’ under Section 2(h)(iia) of the Securities Contracts (Regulation) Act 1956...
In continuation of the aforesaid circular and with a view to specifying the details of various aspects of the trading of EGR on the recognized stock exchange/s, guidelines covering the following subjects are prescribed in the Annexures to this circular.
This Circular shall come into force with immediate effect.
The Exchanges shall take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same,
bring the provisions of this circular to the notice of the members of the Exchange and also to disseminate the same on their website,
communicate to SEBI, the status of the implementation of the provisions of this Circular.
This Circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
Trading in EGR segment shall be permitted from Monday to Friday.
Stock exchanges can set their trading hours within the time limit of 9:00AM to 11:30PM / 11:55PM (as per US day light savings in Spring/ Fall Season).
all stock exchanges shall jointly decide the common trade timing and notify the same, well in advance, to the market under prior intimation to SEBI.
Stock exchanges shall ensure that they have necessary risk management system and infrastructure in place commensurate to their trading hours.
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Source: SecMarx — Trading features pertaining to the Electronic Gold Receipts (EGR) segment. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.