“It has been decided that physical verification of gold underlying the Gold ETF units shall be carried out by statutory auditors of mutual fund schemes and reports (given) to trustees in half-yearly basis,” Sebi said. The half-yearly reports, which MFs first have to submit to their trustees, need to then be forwarded to Sebi.
In the reports, the MFs will have to mention whether the funds invested in Gold ETFs was in line with the amount mentioned in the Scheme Information Document and if the same has been audited, as per the Sebi circular.
“This shall come into effect from the half-yearly report ending April, 2011, by trustees to Sebi,” it said.
Published 07 December 2010, 15:29 IST