Reliance Gold Exchange Traded Fund
Reliance Gold Exchange Traded Fund (RGETF) an open ended Gold Exchange Traded Fund will track the performance of Gold Bullion. The units issued under the scheme will represents the value of gold held in the scheme. The units being offered will have a face value of Rs.100/- each and will be issued at a premium equivalent to the difference between the allotment price and the face value of Rs.100/-.RGETF offers investors a new, innovative, relatively cost efficient and secure way to access the gold market. The units are intended to offer investors a means of participating in the gold bullion market by buying and selling without the necessity of taking physical delivery of gold. The introduction of units of RGETF is intended to lower many of the barriers, such as purity, access, custody and transaction costs, that have prevented some investors from investing in gold.
ETFs are bought/sold as mentioned below:
a. Large investors and authorized participants swap creation units for gold in physical form or in
the form of cash.
b. The secondary markets where the ETFs are traded like units of common securities on the stock exchange(s) during the trading hours.

Posted by rupya at May 20, 2007 11:13 AM