 "Reliance Capital suspends trading in gold saving funds")
After jewellers, it is now turn for small individual consumers to bail the government out of the rapidly growing current account deficit (CAD) through abstaining from fresh purchase of gold.
Stepping ahead, Reliance Capital Asset Management Ltd (RCAM) has suspended sale of units for gold subscription in Reliance Gold Savings Fund with affect from August 1.
In a notice to investors, RCAM said that the company in consultation with the trustee company of Reliance Mutual Fund i.e Reliance Capital Trustee Co. Ltd. (RCTC), has decided to temporarily suspend the sale of units for subscription in Reliance Gold Savings Fund (RGSF), with effect from August 01, 2013.
This would include any kind of fresh request / mandate received for investments / creation of unit under the scheme either through lumpsum or through special products such as Systematic Investment Plan (SIP) / Systematic Transfer Plan (STP) i.e. Reliance Golden Transfer Step (for STP IN only), Trigger i.e. Reliance Golden Trigger, Flexible Asset Selection Tool (FAST) etc.
The said initiative has been taken to support the drive of government for discouraging the bulk investments and import of gold into India in order to control the current account deficit.
RCAM shall re-initiate the fresh subscription process by giving a notice in advance. It is further clarified that, existing registered mandates for SIPs, STPs, Trigger, FAST etc, through which the units are periodically created in RGSF shall continue to be processed basis the mandates.