India's ICICI Prudential AMC restricts subscription in gold ETF
India's ICICI Prudential AMC restricts subscription in gold ETF June 5 (Reuters) - India's ICICI Prudential Asset Management Company IICL.NS 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)
(Reporting by Nishit Navin in Bengaluru; Editing by Sonia Cheema)
((Nishit.Navin@thomsonreuters.com;))
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