SEBI issues instructions related to the business of electronic gold receipts

Markets regulator SEBI on Monday issued guidelines for trading of electronic gold receipts (EGR) in stock exchanges.

The Securities and Exchange Board of India (SEBI) said in its circular that trading in the EGR section will be allowed from Monday to Friday and the stock exchanges can set the time limit for this business from 9 am to 11.55 pm.

SEBI has also laid down provisions for charges to be levied on transactions, wholesale deals, price range, Investor Protection Fund and Investor Service Fund, detailing various aspects related to trading of EGR on the stock market.

As per the SEBI circular, it will be the responsibility of the exchange to justify the charges levied by the stock exchanges on EGR transactions so that the interest of investors is not affected.