Want to start trading / Investing in E-Gold?
What is E-Gold?
As most of us E-gold is an electronic form of buying and selling gold similar to that of equities and commodities. E-Gold can be traded through National Spot Exchange (NSEL).
E-Gold trading / investment – Registration procedure
Investor who wants to trade or invest in E-Gold has to open two accounts:
1. Beneficiary Account – Demat account for the commodities segment with a depository participant of NSEL.
2. Client Account – Trading account with a member of NSEL.
How to open a beneficiary account?
Similar to that of share trading, the mandatory requirement to trade with E-Gold is that the investor must have a separate demat account. This states that the demat account you use for dealing with your equities cannot be used for E-Gold.
Investors interested to buy or sell E-Gold can open a demat account with a DP who is affiliated to NSEL. To check the list of DP affiliated to NSEL, Click here.
1. A depository participant has to be selected from the empanelled DPs listed by NSEL.
2. Account opening form has to be obtained from the DP and must be filled in.
3. The duly filled form has to be submitted to the DP along with the other necessary documents such as proof of identity, proof of address, bank proof, etc.
4. The agreement with the DP has to be signed.
How to open a client account?
1. A broker has to be selected from the list of members of NSEL.
2. Account opening form has to be obtained from the member and must be filled in.
3. The duly filled form has to be submitted to the member along with the other necessary documents such as proof of identity, proof of address, bank proof, etc.
4. The agreement with the member has to be signed.
What has to be submitted?
1. Duly filled account opening forms.
2. Depository Participant – Client Agreement
3. Member – Client Agreement
4. Signed DP Rate Sheet
5. Copy of PAN card
6. Proof of Identity (Aadhar, Passport, Voter ID, PAN Card, etc.)
7. Proof of Address (Aadhar, Passport, Voter ID, PAN Card, Bank Passbook/statement etc.)
8. Passport size photographs
9. MICR Cheque copy
Once the account is opened successfully, you can start trading or investing in E-Gold. To know how to convert the E-Gold into physical gold.