The Securities and Exchange Board of India (SEBI) intends to verify all physical gold stores held by ETFs.
In a circular issued on Monday, the board revealed that as of April 2011 all gold bullion underlying ETFs will have to be examined by statutory auditors on a biannual basis. Confirmation of the stores will then form part of the half yearly report presented by trustees to SEBI. Gold ETFs are an increasingly popular investment in India, with figures compiled by the Association of Mutual Funds in India (AMFI) showing monthly sales of over 3bn rupees in November. According to AMFI, assets in gold ETFs stood at 34.6bn rupees as at the end of last month, a growth of almost 300% year on y...
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