Auditing made mandatory for gold ETFs
The physical gold underlying the Gold ETF units will now have to be verified by auditors and reported in the half yearly report submitted by trustees of the fund to the SEBI.
In a circular issued on Monday, SEBI said this requirement will come into effect from the half yearly report ending April 2011
Cautious
This move comes at a time when gold ETFs are gaining popularity as an investment avenue.
Analysts, therefore, believe that SEBI is only trying to be cautious.
With gold ETFs becoming popular amongst the investors, SEBI`s objective through this is to keep a tab on the custodians of these units, said the analysts.
The trustees report should also verify whether the assets of gold ETFs are in compliance with the asset allocation mentioned in the Scheme Information document, said the circular.
Microfinance institutions under stress, not threat: RBI
Microfinance institutions (MFI) are an integral part of financial inclusion in India but are currently under some stress, Reserve Bank of India Deputy Governor Subir Gokarn said on Tuesday.
"The MFI industry might be under little stress as the banks are finding it difficult to lend to them at this moment. But the system as a whole is not under threat," Gokarn told reporters on the sidelines of an outreach programme on the outskirts of Kolkata.
Plastene India files paper with SEBI for IPO
Chennai based, Plastene India is planning to enter capital markets with an initial public offering (IPO) of equity shares of Rs 10 each aggregating to 10.50 million equity shares to be decided through 100% book building process. The net issue would constitute 27.90% of the fully diluted post issue paid-up capital of the company.
The company has filed a draft red herring prospectus (DRHP) for the same. The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (`BSE`) and the National Stock Exchange of India (NSE).
Motilal Oswal Investment Advisors and Karvy Computershare are helping the company in the fund raising process. The objects of the Issue are to finance its business expansion plans and achieve the benefits of listing on the Stock Exchange.
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