ICICI Prudential Mutual Fund, HDFC, Aditya Birla Sun Life, Invesco, DSP and Tata are among six mfs that have issued notices suspending fresh investments in gold ETF FoFs from Oct 16. The curbs cover lump‑sum subscriptions, new SIPs, top‑ups and new systematic transfer plans, but allow existing SIP and STP instalments registered before the cut‑off to continue. Redemptions and switch‑outs remain unaffected.
DSP’s notice, dated Oct 15, specifies that any application received after 3 pm will be rejected and refunded. Existing systematic transactions registered on or before Oct 15 will be processed as normal, per the fund’s press release.
The move comes ahead of Dussehra and Diwali, when demand for gold typically surges. Reuters reported that India's gold imports fell to $1.8 billion in September from $2.3 billion in August, while gold and silver ETF inflows rose during the previous festive season as investors shifted to precious metals amid lackluster equity returns.
Analysts warn that the temporary restriction could dampen the growth of the gold ETF index, which historically benefits from a spike in inflows during the Diwali period. SEBI is expected to issue a clarification on its regulatory stance next week, according to a spokesperson.
Investors should keep a close eye on upcoming RBI and SEBI statements, as the curbs are temporary and may be lifted once the festive buying season subsides.