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TMI BlogFramework for operationalizing the Gold Exchange in IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... (iia) of the Securities Contracts (Regulation) Act 1956, and vide Gazette notification dated December 31, 2021, SEBI (Vault Managers) Regulations, 2021, have been notified, paving the way for operationalizing of Gold Exchange. The framework for the proposed Gold Exchange is listed at Annexure 1. 3. The stock exchange/s desirous of trading in electronic gold receipts (EGRs) may apply to SEBI for approval of trading of EGRs in new segment. 4. The Circular shall come into force with immediate effect. 5. The Exchanges are advised to: 5.1. take steps to make necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the same, 5.2. bring the provisions of this circular to the notice of the members of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Depositories, which will be made accessible to all the entities i.e., Vault Managers, Depositories, Stock Exchanges and Clearing Corporations. 4.2. Supply of the physical gold: 4.2.1. The supply of the physical gold, to be converted into EGR, shall be the fresh deposit of gold, coming into the vaults, either through imports or through stock exchange/s accredited domestic refineries. 4.2.2. The existing deposit of gold lying in the vaults, which meets the aforesaid criteria and has never been out of the vaulting infrastructure, can be considered for conversion into EGR. 4.2.3. Vault managers shall ensure that 'gold' to be converted into EGR meets the aforementioned criteria. 4.3. Standard of gold: The 'gold' which compli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such periodicity shall be issued by SEBI in due course. 5.2. The Clearing Corporation shall settle the trades executed on the stock exchange/s, by way of transferring EGR/s and cash to the buyer and seller of EGR/s, respectively. 6. Third Tranche → Conversion of EGR into Physical Gold are as follows: 6.1. Beneficial owner of EGR intending to obtain physical gold against the EGR/s shall request the Depository for the same. The Depository, in turn shall forward such request/s to the Vault Manager. The Vault Manager after delivering the gold to the beneficial owner and simultaneously extinguishing such EGR/s, shall share the required data with the Depository for reconciliation. 6.2. The Depository, in turn, shall send the informati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent possible, and possibly, save upon the cost of withdrawal of gold from the vaults. 10. Withdrawal Center: To increase the reach of Gold Exchange, all existing branches of vault managers may be allowed as 'collection and/or withdrawal center', which meets the safety standards, as specified by the SEBI. The details of withdrawal centers shall be available on the websites of depositories and vault managers. 11. Storage (vaulting) and Withdrawal Charges: The storage and withdrawal charges shall be levied by the vault managers and be collected by the depository from the beneficial owner of EGR's, for onward payment to the Vault Managers. The charges shall be disclosed by the Vault Managers upfront to the public at large. 12. Empanelment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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