| Market regulator the Securities and Exchange Board of India (Sebi) cleared the way for gold ETFs in December last year. |
| Gold BeES is an open-ended, exchange-listed fund, which will track domestic prices of the precious metal through investments in its physical form. After the new fund offer (NFO), the gold ETF would be listed on the National Stock Exchange, the company said here today. |
| "We would also appoint five authorised participants, who would be brokers trading gold, basically. They would accept physical delivery of the yellow metal from investors once the NFO period is over and would also deal in the metal," Rajan Mehta, executive director, Benchmark AMC, said. Besides, investors will be able to buy or sell units of Gold BeES in the secondary market on the NSE. |
| The fund will open for subscription on February 15 and close on February 23. Minimum investment for the scheme is Rs 10,000, and each unit of Gold BeES will be equal to the price of one gram of gold. Total expenses ratio will not exceed 1 per cent a year. During the offer period, the fund would charge an entry load in the range of 0-1.5 per cent. |
| Bank of Nova Scotia would be the custodian and Citibank would do the fund accounting. Besides Benchmark, UTI AMC has received the Sebi go-ahead to launch gold ETF. |
| Other fund houses such as Others such as Tata Asset Management, Prudential ICICI AMC and Kotak Mahindra AMC have also filed offer documents with the regulator. |
| GOLDEN OPPORTUNITY |
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