Page 7 - Bullion World Volume 03 Issue 07 July 2022

Bullion World | Volume 5 | Issue 09 | September 2025

EDITORIAL

The aim is to eliminate inconsistencies in Net
Asset Value (NAV) calculations across fund houses,
Dear Readers, enhance transparency and investor trust. However,
increased demand for gold via ETFs raises a key
The Insurance Regulatory and Development question: "Will it be met through higher imports or
Authority of India (IRDAI) has taken a significant step through the Gold Monetisation Scheme (GMS)?."
to expand asset choices for insurers by permitting
investments in Gold Exchange-Traded Funds (Gold- Together, these regulatory shifts signal a maturing
ETFs). As per the draft guidelines issued in July gold investment ecosystem in India - one that could
2025, life, general, and health insurers may invest draw institutional capital, deepen markets, and
up to 5% of a segregated Unit Linked Insurance unlock long-term value for insurers and investors
Plan (ULIP) fund’s assets in Gold ETFs, under the alike. Adoption by other institutions: Pension funds
"Other Approved Investments" category - within the or sovereign wealth entities might follow suit if
existing 15% cap on mutual fund investments. This insurers reap notable benefits. These developments
marks the first formal approval for insurers to invest mark a pivotal moment in India's evolving Gold ETF
in Gold ETFs, offering new avenues for portfolio ecosystem.
diversification and inflation-hedging. The move is
expected to help insurers design more balanced What can be done to kick-start EGR? This could
and competitive products while aligning with global become another powerful vehicle for investors as
asset allocation trends. well as industrial users of gold to access quality metal
at a competitive price and in various denominations.
Institutional entry into the Gold ETF space could Time is apt to take up GST related concerns to the
significantly improve market liquidity, reduce bid-ask GST Council as there are in a massive overhaul and
spreads, and enhance price discovery - developments reform mode. Do you agree with this? We would
that benefit all investors. It may also validate Gold love to hear from you.
ETFs as a mature asset class, encouraging greater
retail participation. Simultaneously, the Securities
and Exchange Board of India (SEBI) has proposed Stay informed, stay ahead
shifting the valuation benchmark for gold and
silver ETFs from the international (London) price to Best wishes,
domestic commodity exchange spot prices, such as G Srivatsava
those from MCX. Editor

We would be happy to receive your comments and feedback on the content of this edition,
please write to editor@bullionworld.in

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