BSE and MMTC-PAMP partner to expand India's Electronic Gold Receipts market

BSE has signed a Memorandum of Understanding with MMTC-PAMP to jointly develop and expand India's Electronic Gold Receipts (EGR) market. The partnership aims to enhance liquidity, support the conversion between physical gold and electronic receipts, and formalize the country's gold trading ecosystem.

BSE Ltd and MMTC-PAMP India Private Ltd signed an agreement on Thursday to jointly develop and expand India’s Electronic Gold Receipts (EGR) market. The partnership marks a significant step toward formalizing the country’s gold trading ecosystem.

Under the terms of the agreement, BSE will launch EGR contracts in multiple denominations and enable seamless conversion between physical gold and electronic receipts. Meanwhile, MMTC-PAMP, which is India’s only London Bullion Market Association (LBMA)-accredited gold and silver refiner, will contribute its expertise in bullion refining, assaying, and the EGR creation and redemption processes.

EGRs are Securities and Exchange Board of India (SEBI)-regulated, exchange-traded securities that enable investors to hold gold in dematerialized form within their demat accounts. BSE, which was the first Indian exchange to introduce EGR trading, currently offers contracts in denominations of 100 mg, 1 gram, and 10 grams at fineness levels of 999 and 995.

The collaboration will focus on joint stakeholder engagement, knowledge-sharing, and market development programs. Both organizations aim to deepen market liquidity, broaden investor participation, and support the migration of gold transactions from informal channels to regulated markets.

This initiative aligns with broader policy goals to reduce India’s dependence on gold imports by mobilizing domestically held gold. Additionally, the partnership seeks to improve price transparency and position India as a global bullion trading hub with a greater role in international gold price formation. India remains one of the world’s largest consumers and holders of gold.

"This partnership between BSE and MMTC-PAMP is a positive development for formalizing India's vast gold market. By combining exchange infrastructure with specialized bullion refining expertise, the initiative addresses key challenges around liquidity, price transparency, and the conversion between physical and digital assets. Encouraging the adoption of SEBI-regulated Electronic Gold Receipts will help channel domestic gold into organized financial systems, ultimately supporting broader economic and policy objectives." — Dr. Shishir Gupta, Founder & CEO, StartupLanes