Sebi asks MFs to disclose details on gold-focused schemes

MUMBAI: Market regulator Sebi today directed mutual funds to disclose whether money collected for gold- focused schemes was actually invested in the precious metal.

"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," the Securities and Exchanges Board of India (SEBI) said in a circular.

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," the market watchdog said.