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Indian first
Posted: Sun, 21 May 2006
[miningmx.com] -- DETAILS of India's gold-backed equity were released to the market after the scheme's backer, Benchmark Mutual, filed papers with the Securities and Exchange Board of India.
The scheme, which is effectively India's first exchange traded fund (ETF), said the scheme includied plans to impose levies on entry and exit from the ETF.
The Financial Express, a Mumbai newspaper, said the product would levy a 4% entry load and 3% exit load on the Gold Benchmark Exchange Traded Scheme (Gold BeES), as the product is called.
Gold BeEs is an open-ended scheme that will list on the National Stock Exchange (NSE). Like the exchange traded fund it will invest in physical gold, the Financial Express said.
"The scheme seeks to generate returns that closely correspond to the returns provided by the domestic price of gold. At least 90% of the corpus will be held in physical
gold, while the rest can be deployed in bonds and money market securities," the newspaper said.
Each unit of Gold BeES will have a face value of Rs 100. Minimum investment is Rs 10,000 and in multiples of Rs 1,000 thereafter, it said.
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