India's first gold ETF lists on NSE

Benchmark Asset Management Company, a Mumbai-based mutual fund house, has listed India's first gold exchange traded fund (GEFT) - Gold BeES - on the National Stock Exchange in Mumbai today.

Listed at Rs 950 per gram BeES soon gained momentum with the price surging to Rs 1104 but due to profit booking slumped to Rs 947 within an hour of the launch. Allotment price, however, remained at Rs 945.7 per gram.

The trading unit for BeES has been fixed at one gram with a tick size of one paise. This instrument offers only trading in and holding of gold in DEMAT account and not the physical delivery of gold.

"Gold BeES, like any other mutual fund instrument, would attract common men to save in small quantity with a minimum possible monthly balance of Rs 1000 (roughly equivalent to the price of one gram gold BeES) which, if continued, may accumulate over a period of time to yield handsome returns at times of need," A P Kurian, chairman, AMFI said.