Mumbai (Maharashtra) [India], May 28 (ANI): National Stock Exchange of India (NSE) has partnered with Sequel Logistics for the creation and vaulting of Electronic Gold Receipts (EGRs), marking the collaboration with a ceremonial bell-ringing event to commemorate the commencement of EGR trading on the exchange.

Electronic Gold Receipts (EGRs) are exchange-traded instruments backed by physical gold stored in secure vaults. They allow investors to trade gold in electronic form while ensuring that each receipt is supported by underlying physical gold.

Under the partnership, Sequel Logistics will provide vaulting services through its network of 23 vaults across the country, where investors and market participants will be able to create and extinguish EGRs. According to NSE, the vaulting network is aimed at ensuring 'secure storage of the underlying physical gold backing every Electronic Gold Receipt issued on the Exchange.'

Commenting on the partnership, Sriram Krishnan, Chief Business Development Officer, NSE, said, 'A trusted, secure and well-distributed vaulting network is foundational to the integrity of the EGR ecosystem, and Sequel's established footprint across the country positions it well to support the creation and extinguishment of EGRs at scale.'

He added that EGRs represent 'a meaningful step in the financialisation of gold in India, offering investors a transparent, exchange-traded and standardised instrument backed by physical gold.'

Rajkumar S, Managing Director and Founder of Sequel Logistics, said the company has developed its vaulting infrastructure with a focus on 'security, transparency and operational rigour.'

'We believe EGRs will play a defining role in the financialisation of gold in India, and Sequel is committed to supporting NSE and the broader ecosystem in building scale and investor confidence in this product,' he said.

The collaboration aims to strengthen the EGR ecosystem in India by providing secure storage infrastructure and supporting transparent gold trading through exchange-backed receipts. (ANI)