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In accordance with Sebi, the buying and selling of EGR would happen on inventory exchanges within the ‘buying and selling unit’ and the identical can be specified by the inventory exchanges.
“The inventory exchanges shall be sure that buying and selling unit just isn’t smaller than tenth a part of the corresponding deposit unit,” it stated in a round.
As an illustration, on deposit of 100 grams of gold bar, 1 EGR could also be created of 100 gm buying and selling unit or 10 EGRs could also be created of 10 gm every buying and selling unit.
“Any particular person desirous of dealing in EGR on the inventory change shall deposit the gold with the registered vault managers, within the ‘deposit unit’, which shall be specified by the inventory exchanges,” the round stated.
Amongst others, Sebi stated the inventory exchanges ought to disseminate satisfactory data to traders, particularly for EGRs with totally different deposit and buying and selling unit.
“The main points of deposit unit/ withdrawal unit and buying and selling unit/ supply unit shall be clearly spelt out within the contract specs of the change,” the round stated.
Beneath the principles, the whole transaction involving EGRs will be divided into three tranches — changing bodily gold into EGR, buying and selling of EGR on the inventory change and changing EGR into bodily gold.
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