Speaking at an event organised by the Commodity Participants Association of India (CPAI), Pandey said the regulator is analysing a range of structural, operational and regulatory challenges that have limited the adoption of EGRs since their introduction.
The review forms part of SEBI’s broader strategy to strengthen the commodities market ecosystem and deepen participation across commodity segments.
One of the critical areas under scrutiny is the impact of Goods and Services Tax (GST)-related issues, which market participants believe may be acting as a friction point for liquidity and wider acceptance of EGRs.
Addressing these concerns, Pandey noted, is essential if EGRs are to play a meaningful role in domestic gold price discovery.
EGRs are instruments that represent the conversion of physical gold into electronic form, enabling gold to be traded on exchanges in a more transparent and standardised manner. The framework received its legal backing in December 2021, when the government formally recognised EGRs as securities
Earlier, launching the Past Risk and Return Verification Agency (PaRRVA), the SEBI Chairman said that the platform will provide investors “credible performance data” and regulated entities a platform to showcase genuine performance to clients.
SEBI announced the pilot launch of PaRRVA, “a first-of-its-kind global initiative to validate risk-return metrics by investment advisors, research analysts and trading members, a statement said.
"Investor transparency is the cornerstone of sustainable market development. PaRRVA reaffirms SEBI’s unwavering commitment to keep India’s securities markets fair, transparent, orderly and resilient," said SEBI Chairman.
Pandey said that PaRRVA will provide investors “clarity and confidence” as it brings transparency and standardisation to performance claims made by financial intermediaries.
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