The Securities and Exchange Board of India (Sebi) today cleared the road for the launch of Gold Exchange Traded Funds (GETFs) through an amendment in Sebi Custodian and Securities Act. | |
| The amendment allows custodians to outsource the responsibility of physical safe keeping of gold to a third party. |
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| In the circular, Sebi, however, said , "the custodian shall remain responsible in all respects to its client for safekeeping of the gold kept. The custodian shall continue to fulfill all duties to the clients relating to the gold so kept with the other person, except for its physical safekeeping." |
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| It also clarified that all books, documents and other records relating to the gold, kept with the safe keepers, shall be maintained in the premises of the custodian. The custodians are also required to renew their certificate of operation every three years. |
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