INDIA Amfi expects launch of gold ETFs in Feb

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世界黄金协会或允建新基金在欧洲 印度

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SEBI allows MFs to float gold exchange traded funds

Mumbai, Jan 16: Market regulator SEBI yesterday gave a go-ahead to mutual funds for floating gold exchange traded funds (GETF), thus enabling the investors to trade in gold as shares in the stock market.

In a notification, SEBI said: "the gold held by a gold exchange traded fund scheme shall be valued at the am fixing price of London Bullion Market Association (LBMA) in US dollars per troy ounce for gold having a fineness of 995.0 parts per thousand."

The custodian of Securities Act has also been amended, enabling custodians of the proposed gold funds to outsource safekeeping of bullion to other agencies.

But SEBI made it clear the custodians would be responsible to its clients (mutual funds) for safekeeping of the gold kept with other person, including any risks.

"This is an encouraging development. Common investors will be able to buy and sell gold in small amount at leading bourses," Association of Mututal Funds of India (AMFI) Chairman A P Kurian.

This would help in diversifying investment and risk by the investors, he added.

UTI MF and benchmark have already submitted draft offers for GETF and are awaiting SEBI's nod to launch these funds.

The GETF will track the price of gold. Its appointed custodians will buy and sell gold bullion as investors look at positions in the ETF.

AiYa

Thank you for providing all those information.

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Gold funds: Prices to be linked to London

GETFS: At least three MFs— including UTI, DSP Merrill Lynch and Kotak MF — have submitted their proposals to float gold funds
MUMBAI, JANUARY 16: Gold exchange traded funds (GETFs) which will soon become a reality in India — the largest consumer of gold in the world — will be linked to the price of the yellow metal in London and not the local market. The Securities and Exchange Board of India (Sebi) has decided that the gold held by a gold exchange traded fund scheme should be valued at the AM fixing price of London Bullion Market Association (LBMA) in dollars per troy ounce for gold having a fineness of 995.0 parts per thousand. “The price will be after adjustment for conversion to metric measures as per standard conversion rates and adjustment for conversion of dollars into rupees as per the RBI reference rate declared by the Foreign Exchange Dealers Association of India (FEDAI),” said a Sebi notification to the mutual funds.


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At least three mutual funds — including UTI, DSP Merrill Lynch and Kotak Mutual Fund — have submitted their proposals to float gold funds and more funds are waiting in the wings. According to the Sebi, the value will be subject to “transportation and other charges that may be normally incurred in bringing such gold from London to the place where it is actually stored on behalf of the mutual fund and the notional customs duty and other applicable taxes and levies that may be normally incurred to bring the gold from London to the place where it is actually stored on behalf of the mutual fund.”

It further says the adjustment may be made on the basis of a notional premium that is usually charged for delivery of gold to the place where it is stored on behalf of the mutual fund. “If gold held by a gold exchange traded fund scheme has a greater fineness, the relevant LBMA prices of AM fixing shall be taken as the reference price,” it says.

If the gold acquired by the gold exchange traded fund scheme is not in the form of standard bars, it should be assayed and converted into standard bars which comply with the good delivery norms of the LBMA and thereafter valued, Sebi says. With the market regulator finetuning the guidelines, fund managers expect gold funds to the market in the coming weeks.

“This instrument would give small investors to accumulate gold in small amount over years and helps them to diversify their portfolio. As and when he wants to sell, he can either get gold or simply sell the units,” A.P. Kurien, chairman, Association of Mutual Funds of India, recently told The Indian Express.

According to Kotak Mutual Fund, which submitted the offer document for its gold fund, “The fund would invest in gold in domestic markets and endeavor to track the spot price of gold in domestic markets. In accordance with the regulations, the fund may engage in gold lending, and/or deposit gold with banks in return for fees. The fund may also invest in invest in bank deposits, in compliance with Regulations. The fund may invest in gold related instruments, if and when regulations permit such investment.”

GETFs are expected to be a hit with investors as India is the largest consumer of gold in the world accounting for more than 23 per cent of the total world demand annually. According to unofficial estimates, India has more than 13,000 tonnes of hoarded gold. Gold occupies a prominent part in rural Indian economy and a significant part of the rural credit market revolves around bullion as a security.

The GETF idea was proposed by Finance Minister P. Chidambaram in the Union Budget 2005, saying that Sebi should permit, in consultation with the RBI, mutual funds (MFs) to introduce GETFs with gold as the underlying asset. Such a move would enable any household “to buy and sell gold in units for as little as Rs 100,” and these units could be traded in the same manner as MF units, he said.

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印度证券交易委员会批准两家互惠基金推出黄金ETFs
Sebi okay for UTI, Benchmark gold ETFs

Ashutosh Joshi / Mumbai January 18, 2007



The Securities and Exchange Board of India (Sebi) today cleared the draft applications filed by Benchmark and UTI Mutual Fund for launching gold exchange-traded funds, nearly eight months after the fund houses filed their draft application with the regulator.  
  
The decision comes in the wake of various amendments made by the regulator to the Sebi Custodian and Securities Act and allied acts, which permitted the custodians of the Gold ETF schemes to hire services of third party depositories for safe keeping of the bullion.  
  
Benchmark mutual fund has yet not finalised its custodian for the scheme, while Bank of Nova Scotia would be the custodian for UTI’s Gold ETF.  
  
Benchmark could be launching its scheme as soon as it finalises its custodian.  
  
However, the UTI MF might delay its launch till last week of February, as the fund house has already launched two New Fund Offers last week, industry sources said.  
  
Last month, Kotak Mutual Fund also filed its draft application for Gold ETF. Deutche Bank and Standard Chartered Bank would be the custodians of Kotak’s scheme. However, Kotak’s scheme is yet to receive the Sebi nod.  
  
GETFs allow investors to trade directly in gold like other equity instruments. Internationally, the GETFs have wider presence in the US and UK markets.  
  
Analysts expect Indian investors could find GETF attractive to invest as the country holds gold stocks of more than Rs 24 lakh crore.  
  
Sebi have been working on the issue of Gold ETFs since long time and made few crucial amendments to the regulations in last two months.  
  
As per the new regulations, banks, which would act as a custodian for the GETF, would be primarily responsible for safe keeping of the gold, even though they could take services of outside parties for safe keeping.  
  
Recently, the regulator also issued guidelines for valuation of the gold held by the exchange traded funds. Amending the mutual fund regulations, the Sebi said the valuation of gold would be based on AM fixing price of London Bullion Markets Association in US Dollars.  
  
The amendments also said that the custodians have to renew their certificate of operation every three years.
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MUMBAI (Reuters) - Two Indian mutual fund companies are set to launch gold exchange-traded funds (ETF) in the country within months after gaining long-awaited approval from the stock market regulator on Wednesday.

UTI Asset Management Co. Pvt. Ltd. and Benchmark Asset Management Co. Pvt. Ltd. said the Securities and Exchange Board of India had said they could file their offer documents to start attracting investments.

"We have just got the approval, now we need to have an internal discussion on when we can launch it," UTI's product head R. Raja said.

"But it could happen shortly."

Commodity-backed investment products have caught the fancy of investors worldwide seeking alternate assets classes to diversify their portfolios.

There are some 10 bullion ETFs in countries including the United States, Britain, Australia, Turkey, Singapore and South Africa. ETFs are listed on stock exchanges and track spot gold prices.

The Indian funds would be listed on the National Stock Exchange.

"We are very happy that it has come," Sanjiv Shah, executive director of Benchmark, said of the approval. "We are most likely to launch it within this quarter."

BANKING ON INVESTMENT DEMAND

India is the world's biggest consumer of gold, consuming 700-800 tonnes annual of the precious metal a year -- the majority of which is used for jewellery.

The gold ETFs are expected to be popular as investment-led buying for gold has pushed aside some of the demand for gold jewellery, the mutual fund companies said.

"We think the ETFs will become very popular, especially as the National Stock Exchange can be accessed in hundreds of cities," said Benchmark's Shah. "One just needs to toldl his broker to buy the gold ETF just like equity shares."

Both companies said the unit of the gold shares would be one gram to attract the maximum retail participation.

"We would be asking investors to invest in cash as well as gold initially," UTI's Raja said.

Kotak Mutual Fund is awaiting approval for a gold ETF from SEBI after applying last month.

"It could take 15-20 days or even go beyond that," said a fund manager in the company.

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India’s 1st Gold ETF opens on Feb 15
India Infoline News Service / Mumbai Feb 02, 2007 11:48

Benchmark Mutual Fund is the first AMC to launch India’s first open-ended fund Gold BeEs, a Gold Benchmark Exchange Traded fund.

India’s first Gold Exchange Traded Fund (Gold ETF) will be open for subscription on February 15. Benchmark Mutual Fund is the first Asset Management Company (AMC) to launch India’s first open-ended gold fund called Gold BeES. The new fund offer (NFO) will close for subscription on February 23.

After the closure, within 30 days the fund proposes to list on the National Stock Exchange (NSE). The scheme intends to provide returns that closely correspond to returns provided by domestic prices of gold by investing 90% in physical gold.

The minimum subscription amount for the scheme is Rs10, 000 and in multiples of Rs 1,000 thereafter. Units will be allotted within 30 days from the date of NFO closure up to three decimal points. Each unit of Gold BeES will be approximatoldy equal to the price of one gram of gold.

Investors would be able to buy and sell gold units compulsorily in dematerialized form. Investors wishing to buy gold units in this scheme will require a beneficiary account with any depositary participants of NSDL or CDSL. They will also have to indicate in the application the DP ID, DP name and the beneficiary account number to the DP at the time of purchasing the units.

The fund will be managed by Vishal.Jain.

Benchmark AMC has appointed the Bank of Nova Scotia as the custodian for the fund.

The fund will charge an entry load during new fund offer in following manner.

Investment                                       Load
Rs 10,000-49,99,000                         1.5%
Rs 50,00,000 to Rs. 1,99,99,000        1.0%
Rs. 2,00,00,000 to Rs. 4,99,99,000    0.5%
Rs. 5,00,00,000 and above                NIL

金魔

反斗星  在 2007-2-4 05:53 PM 發表:

印度第1 金ETF於2月15日開始
印度Infoline新聞社/ Mumbai 2月02日， 2007 11:48

基準共同基金是首先啟動印度的第一個AMC 沒有固定限度的專款黃金BeEs，一筆黃金基準外匯交易基金。

印度首先黃金外匯交易 ...

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