The Wealth Company, part of the Pantomath Group, is pleased to announce that it has, in principle, confirmed its participation in the Electronic Gold Receipts (EGR) segment launched by the National Stock Exchange of India (NSE). With this, The Wealth Company becomes the first asset management company in the market to sign up, in principle, for the EGR product, subject to the applicable regulatory guidance being made available.
EGRs are exchange-traded instruments backed by physical gold of standardised purity, offering investors a transparent, regulated and efficient route to participate in gold as a financialised asset class. The Wealth Company’s participation is intended to broaden investor access to gold through institutional investment vehicles and contribute to the development of a deep and vibrant EGR ecosystem in India.
Welcoming the partnership, Mr. Ashish Kumar Chauhan, Managing Director and Chief Executive Officer, NSE, said,
“We are delighted to welcome The Wealth Company as the first asset management company to partner with NSE on the Electronic Gold Receipts segment. 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. The participation of asset managers is central to building scale, depth and investor confidence in this segment, and we thank The Wealth Company for their early conviction in the product.”
Commenting on the announcement, Ms. Madhu Lunawat, of The Wealth Company, said,
“EGR is the product of the future, and The Wealth Company is delighted to support EGR, an important offering from NSE, which has consistently brought new and innovative products to the Indian capital markets from time to time. We are delighted to be the first asset management company in the market to sign up, in principle, for the EGR product.”
EGRs will bring gold buying into the financial market arena while creating a highly regulated and standardized ecosystem. It will also enhance the ease of doing business quotient as EGRs can be bought or sold easily through a demat account.
The partnership between NSE and The Wealth Company will act as a catalyst towards achieving the larger goal of making gold investment transparent, safe and uniform across the country. This assumes significance as India is among the world’s largest gold consumer market, but a significant part of gold buying happens through local markets where purity and prices vary.