Press Trust of India / Mumbai Oct 15, 2009, 20:16 IST
The law ministry is looking into the matter of allowing the country's commodity exchanges to trade in gold ETFs, Forward Markets Commission Member D Kolamkar said here.
At present, gold Exchange Traded Futures (ETF) can be traded on stock exchanges but not on commodity bourses. India is the world's largest consumer of the yellow metal.
"The matter to allow Gold ETF trading on commodity exchanges is under the government's consideration. The Law Minister is looking into it," Kolamkar told reporters on the sidelines of the launch of a book.
Replying to a query on representation being made by the FMC, Kolamkar said, there had been some correspondence with the concerned Ministry.
Meanwhile, an FMC official said that once the Forward Contract Regulation Act amendment bill is passed in Parliament, products like gold ETFs will become a part of the commodity markets, and will be regulated by FMC.
Gold ETFs are a spot instrument launched by mutual funds and are being traded on the stock exchanges and regulated by Sebi.
Thats really a very nice step to take by the Forward Markets Commission. This will really give a boost to the already popular Gold ETFs like Gold BeES. What say?
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