The Ministry of Finance, vide notification dated December 24, 2021 (“Notification”), in exercise of the powers conferred by sub-clause (iia) of clause (h) of Section 2 of the Securities Contracts (Regulation) Act, 1956 (“SCRA”), has declared “Electronic Gold Receipt” as securities for the purpose of SCRA.
“Electronic Gold Receipt” means an electronic receipt issued on the basis of deposit of underlying physical gold in accordance with the regulations made by the Securities and Exchange Board of India under Section 31 of SCRA.
Please find a copy of the Notification, here and SCRA, here.
This update has been contributed by Nidhi Arya (Partner) and Vansh Aggarwal (Associate).
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