Investment by Gold ETFs in Gold Monetisation Scheme of Banks
Summary
SEBI designates the Gold Monetisation Scheme (GMS) as a gold-related instrument for investment by Gold ETFs, replacing the previous Gold Deposit Scheme. Cumulative investments in both schemes are capped at 20% of the total Assets Under Management for such schemes. Existing investments under the old scheme are permitted to run until maturity unless withdrawn prematurely.
Text
GMS will also be designated as a gold related instrument, in line with GDS of Banks. Investment in GMS by Gold ETFs of Mutual Funds will be subject to following conditions
The cumulative investment by Gold ETF in GDS and GMS will not exceed 20% of total AUM of such schemes.
All other conditions applicable to investments in GDS of banks will also be applicable to investments by Gold ETFs in GMS.
Existing investments by Gold ETFs of Mutual Funds under the GDS will be allowed to run till maturity unless these are withdrawn prematurely.
Source: SecMarx — Investment by Gold ETFs in Gold Monetisation Scheme of Banks. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.