What is E-gold?
E-gold can be defined as the gold that can be bought/stored in an electronic form. E-gold can be bought in the form of units similar to shares. 1 unit of E-gold is equivalent to 1gm of gold. Investors can hold it in demat form. This electronic form gold can be converted into physical form at any time.
How to open E-gold Account?
Any retail investor who wishes to trade or invest in E-Series like e-gold, e-silver products of National Spot Exchange Ltd needs to open two accounts.
1- Client Account (trading account/ client code) with a member of NSEL.
2- Beneficiary Account (demat account) for the commodities segment with an empanelled DP of NSEL.
Process of opening a Client Account
1- Select a member from the list of members of NSEL (which opens E-gold Account).
2- Fill up the account opening form provided by the member.
3- Submit the duly filled form with the other requirements such as proof of identity and proof of address.
4- Sign the member-client agreement with the member.
Process of opening a Beneficiary Account
1- Select a Depository Participant (DP) from the list of DPs empanelled by NSEL.
2- Fill up the account opening form provided by the DP.
3- Submit the duly filled form to the DP along with the other requirements such as proof of identity and proof of address.
4- Sign the agreement with the DP.
Things you Need to Submit
1- Completely filled A/C Opening Form
2- DP – Client Agreement
3- Signed DP Rate Sheet
4- Proof Of Address (POA)- Ration card, Passport, Voter ID Card, Driving license, Bank Passbook / Bank Statement etc.
5- Proof of Identity (POI) – Passport, Voter ID Card, Driving license, PAN Card etc.
6-Photograph & Signature across Photo required for all holders.
7- MICR Cheque Copy
Charges involving in buying E-gold in India
There are some charges involved in transaction, delivery, settlement, and holding of E-gold.
1- Transaction charges
The exchange will take Rs 20 per lakhs as turn over charges for both buyer and seller. This will be taken on a monthly basis, and applicable for all the transaction executed.
2- Dematerialization / Corporate action Charges
The authorized dealer will be charged for corporate action time to time as the same rate at which in the NSDL. Annual Maintenance Charge (AMC) and transaction charges on all debit instructions
3- Storage charge
The storage charges is the charge taken as the fees for holding or keeping the gold in the vault of exchange. This will be taken on monthly basis. It is only Rs 60 paisa for 1 unit of E-gold for one month. It should be pay within 15 day of intimation.
4- Default in paying the storage charge
The charge is taken as the fine for delay in the payment of storage charge. The client should remit this charge at an interest rate of 15% per annual as default charge.
5- Delivery charge
The charge applicable on delivery of the physical gold is known as the delivery charge. The delivery charge is Rs 200 per lifting charged by the NSEL. They also take charge making or packing charge in case of gold bar.
6- VAT charge
The client required to pay the VAT/GST charges and all other local taxes charges on delivery of gold. The VAT charge will be 1% of the value of the items.