Reliance Capital halts gold trading to help cut country's CAD
21 Jun 2013
Reliance Capital, part of Anil Ambani's Reliance Industries Ltd, today said it has suspended the physical sale of gold as well as all gold-related investment products to support the government's efforts to curb gold imports and help to rein in the galloping current account deficit.
The company has also decided to suspend its gold financing business. New subscriptions in gold savings fund have also been put on hold, Reliance Capital said in a statement to the Bombay Stock Exchange.
"Existing SIP investors will not be affected by this decision," the company said.
India is the world's biggest importer of gold, and this is also the biggest drain on dwindling foreign reserves after crude oil. Investment in gold has surged as industrial production remains bogged down.
Reliance Capital's gold savings fund has assets under management of Rs2,271 crore.
