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Our Bureau

Mumbai , Nov. 10

Investors will soon be able to invest in gold through the Gold Exchange Traded Funds (GETFs).

With the much-awaited amendment of the SEBI custodian regulations through, the launch of GETFs has taken off, said Mr Bhargav Vaidya of B.N. Vaidya & Associates.

The amendment now allows custodians of gold to assign the safe keeping of the metal to any person who is not a custodian. Earlier, the custodians were prohibited from delegating their functions to non-custodians.

Now the mutual funds will have to decide on the custodian for the GETFs, said Mr R. Raja, Senior Vice-President of UTI Mutual Fund. Custodian charges, including insurance cost, will have to be worked out.

"We are ready to launch the fund once we freeze on the custodian," said Mr Raja adding that investors need new investments products as alternative opportunities. "We will clear the offer document once the mutual funds re-file them," said a senior SEBI official.

"We have been cleared as custodians by SEBI and are in talks with persons for keeping physical gold," said Mr Rajan Venktesh, head of Scotia Mocatta.

Brinks Arya India Pvt Ltd, Lemuir Secure Logistics Pvt Ltd. and Group 4 Securicor stock gold physically for banks. Today, the custodians registered with SEBI are banks.

The certificate granted to any custodian will be valid for 3 years after which the custodian will have to apply for renewal. The GETFs are to be launched on the National Stock Exchange.

More Stories on : Investments | Gold & Silver | Mutual Funds | Regulatory Bodies & Rulings

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