India's ICICI Prudential Asset Management Company said on Friday it has temporarily restricted subscriptions in its gold exchange-traded fund (ETF).* The company said it will not accept direct subscriptions of more than 250 million rupees ($2.63 million) in the ETF until further notice. It did not mention a reason for the restriction.* On Thursday, peer HDFC Mutual Fund also restricted lump-sum, or one-time, subscriptions in its gold ETFs, citing market conditions as strong demand for gold amid geopolitical uncertainty drives up inflows into such funds.* Large inflows can be difficult for gold ETFs to absorb during periods of heavy demand.* Indian gold ETFs have attracted net inflows of $3.48 billion so far this year. ($1 = 94.9450 Indian rupees)
ICICI Prudential AMC restricts subscription in gold ETF
The company said it will not accept direct subscriptions of more than 250 million rupees ($2.63 million) in the ETF until further notice. It did not mention a reason for the restriction.
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