MF statutory auditors to audit physical gold held under gold ETF schemes twice a year
Mumbai: SEBI has asked mutual funds to carry out physical verification of gold held under gold exchange traded fund (ETF) schemes every six months.
The verification has to be carried out by statutory auditors of mutual fund schemes and reported to mutual fund trustees on a half yearly basis, SEBI said in a circular to asset management companies on Thursday. The audit report will have to accompany the half-yearly reports that trustees of each mutual fund submit to SEBI.
The first report of the audit of physical gold will have to be submitted for the half year ending April 30, 2011.
Apart from physical verification of gold, the statutory auditors will have to certify that the assets of gold ETF are invested in gold as per the asset allocation mentioned in the scheme information document.
