Indian Mutual Funds Halt Bulk Gold ETF Subscriptions Under Regulatory Guidance

Major Indian mutual fund houses, including Kotak Mahindra, UTI, and HDFC, have suspended bulk subscriptions to gold exchange-traded funds ahead of Dussehra and Diwali. The move followed informal guidance from the Securities and Exchange Board of India aimed at curbing seasonal import surges to protect the Indian rupee and manage the trade deficit. India's gold imports previously dropped to $1.8 billion in September from $2.3 billion in August. While ETF redemptions and traditional retail purchases at jewellers remain active, the restriction removes a key institutional demand driver during peak festival season.