Half yearly report by Trustees
Summary
The circular mandates that statutory auditors of mutual fund schemes conduct physical verification of gold underlying Gold ETF units. This verification must be reported to the trustees on a half-yearly basis and included in the trustees' half-yearly report to SEBI. The modification to Annexure II of the earlier circular becomes effective from the half-yearly report ending April 2011.
Text
physical verification of gold underlying the Gold ETF units shall be carried out by statutory auditors of mutual fund schemes and reported to trustees on half yearly basis
confirmation on physical verification of gold as above shall also form part of half yearly report by trustees to SEBI
Whether the assets of Gold ETF are invested in gold as per the asset allocation mentioned in the Scheme Information document ?
Whether physical verification of gold was conducted by statutory auditor?
This shall come into effect from the half yearly report ending April 2011 by trustees to SEBI
Source: SecMarx — Half yearly report by Trustees. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.