Monday, February 28, 2005

Gold Exchange Traded Funds (GETFs) in India

Finance Minister P. Chidambarm proposed that households in India be able to buy and sell gold in units for as little as Rs. 100.

The gold units could be traded in the same manner as units of mutual funds, said Chidambaram.

Chidambaram said 10 years ago the country had embarked on a process to ensure that gold inflows were through official channels alone.

"I believe that we are now in a position to introduce 'gold units' and create a market for such units," he said and that he proposed to ask the Securities and Exchange Board of India, in consultation with the Reserve Bank of India, to permit mutual funds to introduce Gold Exchange Traded Funds (GETFs) with gold as the underlying asset