Gold Funds may be Hit by RBI Curbs on Imports

Gold exchange traded funds (ETF), among the hottest financial products in recent times, may face a curious problem because of a recent RBI circular which bars the import of gold on a consignment basis for domestic use. Authorised participants (APs) who create and redeem units backed by gold, and fund houses said this could crimp liquidity in the product and prevent growth of assets under management in quantity terms unless RBI clears the air on the issue.............

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