Non-bank custodians to exercise gold exchanges: SEBI
To begin with, the reports say that the non-bank custodians registered under SEBI would exercise the gold exchanges. So then, this comes up in the regulations made in the mutual fund industry to manage gold-related instruments.
Presently, the banks that stood registered as custodians with SEBI have permission to access the gold exchange-traded funds (ETFs). Besides, after the revision of the regulations, the non-banking and banking custodians could manage the gold ETFs.
Particularly, the regulator has amended the SEBI (Mutual Funds) Regulations, 1996. Significantly, this move focuses on reducing the concentration of custodial services for gold or related instruments.
Also, the amendments to the norms came up after the SEBI board meeting in February.
SEBI has also permitted sponsors or asset management companies (AMC) to invest in close-ended mutual fund schemes.
Despite this, SEBI stated the AMCs have to invest either at least 1% of the amount. So then, this would remain raised as the new fund offer or Rs 50 lakh, whichever remains less. Currently, the investment by the sponsor or AMC stands mandatory in all schemes, except close-ended schemes. However, SEBI in its board meeting stated that to bring uniformity across schemes, the board has decided that the sponsor should invest in close-ended schemes.