NSE partners Augmont to unlock India's private gold holdings
India's National Stock Exchange has partnered with Augmont to expand electronic gold receipts, aiming to channel billions in idle household bullion into the formal financial system and reduce heavy import reliance.
India's National Stock Exchange has partnered with Augmont to scale its electronic gold receipt framework. The EGR system, launched on May 4, converts physical bullion into dematerialised securities. The collaboration aims to increase participation from retail investors, jewellers, and other market professionals.
Under the framework, physical gold becomes exchange-traded units held in standard demat accounts. Investors retain full price exposure while gaining the ability to trade, pledge, or redeem their holdings. A securities lending and borrowing mechanism also allows holders to lend their gold directly to jewellery manufacturers.
The initiative targets a massive pool of locked capital. India holds an estimated 30,000 to 35,000 tonnes of gold in private hands, an asset base largely absent from the formal financial system. Mobilising this domestic supply could reduce the country's heavy reliance on imports, which reached $71.98 billion in FY26.
Augmont will manage EGR creation, redemption, liquidity provision, delivery, and price discovery. Augmont Director Ketan Kothari said "EGRs could formalise India's vast household gold holdings by allowing them to be held, traded, lent and redeemed through a regulated exchange framework." He said combining digital access with exchange infrastructure could accelerate adoption of the product.
The lending component is designed to restructure how the jewellery industry sources raw materials. India Bullion and Jewellers Association National Secretary Surendra Mehta said "EGRs could strengthen the organised gold market by offering exchange-based price discovery, guaranteed settlement, standardised quality and a lending mechanism that channels idle gold to jewellery manufacturers."
For market participants, the integration of Augmont's operational capabilities with the NSE's trading infrastructure establishes a formalised domestic supply chain. By channelling household gold to manufacturers, the system improves capital efficiency within the bullion sector. This structural shift supports broader economic objectives by reducing the foreign exchange outflow required for gold imports.
