Why NSE’s tie-up with Augmont doesn’t add up
The post Why NSE’s tie-up with Augmont doesn’t add up appeared first on The Ken .
On November 7, the National Stock Exchange (NSE) of India announced a significant jump in trading volumes for its Electronic Gold Receipts (EGRs) on Dhanteras, the first day of the trade. The exchange attributed this surge to heightened awareness and acceptance of EGRs among investors, with nearly 228,000 units traded. However, upon closer examination, the actual traded quantity is closer to 2,277 units when considering a standard unit of 10 grams, rather than the inflated figure of nearly 228,000 units.
Augmont Enterprises, a Mumbai-based gold trading platform, was identified as the entity facilitating these trades. Both NSE and Augmont are relatively new entrants to the market, with Augmont launching in September. The collaboration between NSE and Augmont aimed to integrate India's gold market with regulated exchange infrastructure, creating a platform for investors to trade physically backed gold.
Despite the press releases touting record-breaking volumes, the actual trading activity was more modest, highlighting the importance of accurate reporting in financial markets.
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