New Delhi: The upward swing in Gold prices in the recent times has cast a huge burden on household budgets in India –a country which has tradition of keeping gold as an asset, for marriages and also as a hedge during crisis.
Added to that policy uncertainty, geopolitical risks has also cemented gold’s position as a safe haven asset over the years. However, amidst the sustained upside potential in gold prices, questions were raised in Rajya Sabha recently regarding government’s position on a separate rates or rules can be considered for physical gold and gold ETFs.
Add Zee News as a Preferred Source
Ram Ji Lal Suman, Rajya Sabha MP from Uttar Pradesh raised the question in the Upper House, whether it is a fact that the Gold Exchange Traded Funds (ETFs) are consistently reaching record highs, causing the middle and marginal classes to find themselves unable to purchase gold for occasions such as their daughters’ weddings.
He also enquired whether government will consider to set separate rates/rules for physical gold and Gold ETFs in order to protect physical buyers from the fluctuations in the prices of gold?
MoS for Finance Pankaj Chaudhary responded saying that SEBI (Mutual Funds) Regulations, 1996 specifies guidelines for launch and management of Gold Exchange Traded Funds (ETFs) schemes in India and such schemes are required to invest in physical gold and exchange traded gold derivatives.
He added, the price of the gold ETFs is dependent on the price of physical gold and fluctuation in its price is primarily due to changes in price of gold in the physical markets.
Stay informed on all the , real-time updates, and follow all the important headlines in and on Zee News.