SEBI proposes to bring all bullion trades under vault management rules

August 11, 2026

India's markets regulator proposed on Tuesday extending the rules that currently ​govern vault managers to cover all ‌physically settled bullion underlying SEBI-regulated products, a move aimed at strengthening oversight of the ​country's digital bullion market.

Here are ​the details:

The Securities and Exchange Board of ⁠India has proposed expanding its ​gold-backed Electronic Gold Receipts (EGR) framework to cover ​all physical bullion underlying SEBI-regulated products, including bullion exchange-traded funds and derivatives, according to a ​consultation paper.

Vault managers store physical gold ​that backs electronic gold receipts, which investors can ‌trade ⁠on exchanges.

India is one of the world's largest consumers of gold, and the electronic gold market has expanded in ​recent years ​as ⁠more investors seek alternatives to holding physical bullion.

The consultation paper ​also proposed a circular outlining the ​framework ⁠for EGRs, along with operational guidelines for vaulting services across all SEBI-specified bullion-related instruments.

SEBI ⁠has ​invited public comments on ​the consultation paper until September 1.

[Reuters]