Comments
The NSE and BSE will conduct trading in Gold ETF till 9 pm in Gold ETF on Akshaya Tritiya, considered an auspicious day for buying the yellow metal.
Seeking to cash in on the investor demand for gold on the festive day, the country's top bourses said they have jointly decided to conduct extended live trading session on Friday — on the occasion of Akshaya Tritiya — for trading in gold exchange traded fund (Gold ETF) securities.
The trading will begin at 9 am, as on other days.
Trading in other segments of the two bourses will start and stop at the usual hours.
Akshaya means something that never diminishes. It is believed that something valuable purchased on this day never loses value. Therefore the day is considered auspicious for buying gold, jewellery and other valuable items.
Akshaya Tritiya is observed on the third day of the Hindi month of Vaishaka and this year it falls on May 6. Last year Akshaya Tritiya had fallen on a Sunday and the exchanges had kept trading open till 5 pm.
Trading in gold ETFs allows investors to buy or sell gold in electronic mode and not in the physical form.
NSE saw the turnover more than doubling for gold ETFs in last fiscal.
The traded value of gold ETFs on NSE surged to Rs 4,074.30 crore in 2010-11, as against Rs 1842.36 crore in the previous year. The traded value on NSE for 2006-07 stood at Rs 13.95 crore, which grew to Rs 478.8 crore in 2007-08 and to Rs 1,172.30 crore in 2008-09.
Gold ETFs — where returns are linked to the domestic price of physical gold but spare the investors from the trouble of buying and keeping the yellow metal in physical form — have been gaining ground among investors in past few years.
There was only one asset management company offering gold ETF in 2007, as against about 10 now. These include Axis, Benchmark, UTI, HDFC, ICICI Prudential, Kotak, Quantum, Reliance, Religare and SBI mutual funds.
The returns on gold ETFs are linked to the domestic price of real gold and each gold ETF unit is roughly equal to the price of 1 gm of gold.
The gold ETFs' Asset Under Management — the value of investments in these investment schemes — stood at Rs 4,400 crore as on March, an increase of 176 per cent since March 2010.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.