The Securities and Exchange Board of India is now allowing mutual funds to invest in gold or gold-related instruments. In a release issued yesterday regarding the Securities and Exchange Board of India Regulations, 2006, a Gold Exchange Traded Fund, SEBI indicates that, among other things, initial issue expenses related to the GETF may not exceed 6% of the total assets under management, and in the event there is a delay in investing in the gold instruments, mutual funds may put assets intended for the GETF in short-term deposits in commercial banks.
