Business
Mutual funds halt bulk gold ETF subscriptions
The Hindu BusinessLine··1d ago
Kotak Mahindra Mutual Fund, UTI Mutual Fund and HDFC Mutual Fund issued notices late Thursday suspending bulk subscriptions to gold exchange-traded funds ahead of the festive season. Redemptions remain allowed. Reuters cited a fund executive and bullion officials saying SEBI nudged the halt. Gold imports were $1.8 billion in September, down from $2.3 billion in August.
Prism
What It Means For You
- Large lump-sum gold ETF buyers must wait until funds lift suspension notices.
- Retail redemptions are unchanged, so existing holders can still exit units.
- Dussehra in October and Diwali in early November traditionally lift physical gold demand.
What's Happening
- Notices did not publicly state a reason for the subscription freeze.
- A private-bank bullion dealer called the move precautionary before October import surges.
- India is the world's second-largest gold consumer and relies heavily on imports.
SEBI and Festivals
- Last year's festival season saw strong gold and silver ETF inflows.
- Government raised gold and silver import duties earlier this year as the rupee weakened.
- SEBI did not comment to Reuters outside business hours.
all-news
