New Delhi, Nov 7: The National Stock Exchange of India (NSE) recorded its highest-ever trading activity in the Electronic Gold Receipts (EGR) segment on Dhanteras, with volumes touching 2,27,692 units, setting a new record for the exchange-traded gold instrument.

The milestone reflects growing interest in regulated, exchange-based alternatives to traditional physical gold purchases during the festive season, when demand for the precious metal typically rises. According to the NSE, active participation from gold suppliers helped meet the increased demand and led to substantial creation of fresh EGRs on the exchange.

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Electronic Gold Receipts allow investors to hold gold in dematerialised form through the securities market framework. The instrument combines the underlying value of physical gold with the benefits of transparent trading, secure holdings and standardised clearing and settlement mechanisms.

Unlike several digital gold offerings that operate outside the regulated securities market framework, EGRs function under regulatory oversight. They also provide a mechanism to bring domestically available physical gold, including recycled gold, into the organised financial system.

Commenting on the record trading activity, NSE Chief Business Development Officer Sriram Krishnan said gold has traditionally been an integral part of Dhanteras celebrations, but the ways in which people own and hold the precious metal are changing.

He said EGRs enable investors to retain the intrinsic value of gold without necessarily possessing the physical metal, while benefiting from greater transparency, security and operational efficiency.

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Krishnan further highlighted the potential of the instrument to strengthen India's domestic gold ecosystem by encouraging the conversion of locally available and recycled gold into exchange-traded receipts.

According to him, bringing more domestic gold holdings into the organised market could help mobilise existing resources and potentially reduce the country's dependence on gold imports.

The NSE described the record trading volumes and fresh receipt creation on Dhanteras as encouraging signs of increasing acceptance of the instrument among investors and market participants.

The development marks a significant step in the evolution of India's organised bullion market, as exchanges look to expand regulated avenues for gold investment beyond conventional physical purchases. (with ANI inputs)