Gold Exchange Traded Fund Scheme (Gold ETFs) and Gold Deposit Scheme (GDS) of Banks
Summary
SEBI modifies Para 2 (c) of its earlier circular to permit mutual funds to hold gold certificates issued by banks in dematerialized or physical form. This modification specifically applies to investments made by Gold ETFs in the Gold Deposit Scheme of Banks. The circular is issued under Section 11(1) of the SEBI Act and Regulation 77 of the SEBI Mutual Funds Regulations.
Text
Gold certificates issued by Banks in respect of investments made by Gold ETFs in GDS can be held by mutual funds in dematerialized or physical form.
This circular is issued in exercise of the powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act 1992, read with the provision of Regulation 77 of SEBI (Mutual Funds) Regulation, 1996.
Source: SecMarx — Gold Exchange Traded Fund Scheme (Gold ETFs) and Gold Deposit Scheme (GDS) of Banks. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.