E-gold is the electronic mode of investing in gold, which allows conversion to physical gold at any time. It can be bought as e-gold units in the demat form through the National Spot Exchange (NSEL) platform, with each e-gold unit corresponding to 1 gram. Investors have the option to invest and trade in gold without taking delivery of physical gold, saving them the holding and storage cost.
Demat account
A demat account needs to be opened with a depository participant empanelled with the NSEL. It requires filling up a demat account opening form and providing the KYC documents, a process that usually takes 2-3 days.
Payment
The net outstanding position at the end of the day is settled by delivery and payment on a T+2 basis. Buying e-gold units involves brokerage and transaction costs, stamp duty, demat account charges, and cost of converting the units into physical gold.
Registration
The investor needs to be registered as a client with an NSEL member. The list of members is available at www.nationalspotexchange.com.
Best Regards
Prakash Nair
www.keralites.net          |
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