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Friday, April 08, 2005

SEBI Puts GETFs On Hold

Gold Exchange Traded Funds have been put on hold as the Securities and Exchange Board of India (SEBI) appears to be in no mood to introduce the product in a hurry.

SEBI is understood to have kept the introduction of gold funds on hold for now.
SEBI sources say that the regulator is yet to decide on an implementation strategy for the GETFs.

The issue that is holding up the SEBI is the fact that gold is not a "security" that comes under its mandate. The Forward Markets Commission is in charge of regulating gold. SEBI, however, is said to be not interested in handing over the regulation to the Commission.

If current indications are to go by, GETFs not likley to be lanuched for some time.