ETFs in Gold Monetisation Scheme

gsr-gold-5248-neal-bhaiGold Silver Reports – The gold exchange traded funds can now invest in India’s Gold Monetisation Scheme(GMS). The Securities and Exchange Board of India (SEBI) has issued a circular giving approval for this.

As per the latest SEBI circular, the cumulative investment by Gold ETF in GDS and GMS will not exceed 20% of total AUM of such schemes.

“As per RBI notification dated October 22, 2015, the Gold Monetisation Scheme, 2015 (GMS) will replace the Gold Deposit Scheme, 1999 (GDS). However, the deposits outstanding under the GDS will be allowed to run till maturity unless these are withdrawn by the depositors prematurely,” SEBI says.

The Gold Monetisation Scheme is an ambitious programme launched by the Narendra Modi government to mobilise around 20,000 tonnes of Gold worth $800 billion kept in the country’s lockers and temples. The scheme, however, has received only lukewarm response so far. – Neal Bhai Reports

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