Reliance Capital suspends gold sales
Reliance Capital is suspending sale of gold in physical form, including supply of gold coins through India Post and its asset management arm will also suspend new subscriptions in Reliance Gold Savings Fund.
June 21, 2013 / 15:40 IST
Moneycontrol Bureau
Anil Ambani Group company Reliance Capital is suspending sale of gold in physical form and as an investment product across all businesses, in what it says is a support to government's objective of curbing gold imports."The company has decided to suspend sale of gold in physical form (including inter alia supply of gold coins for sale through India Post) and also as an investment product, across all its businesses and subsidiaries," the company said on Friday.Reliance Capital's commercial finance division will also suspend financing against gold as a security. Additionally, group company Reliance Capital Asset Management will suspend new subscriptions in Reliance Gold Savings Fund. Existing SIP (systematic investment plan) investors will not be affected by this decision, the company said.Reliance Capital's CEO Sam Ghosh says the company is committed to all policy objectives of the Government and Reserve Bank of India to minimise gold imports.According to data released by the Government earlier this week, India's trade deficit in May widened to USD 20.1 billion from USD 17.8 billion a month ago, mainly fuelled by high imports of gold.India's current account deficit hit a high of 6.7 percent of GDP in Oct-Dec quarter. Gold and Silver imports rose almost 90 percent year-on-year to USD 8.4 billion in May. Earlier this month, the Government had raised import duty on gold to 8 percent to contain gold demand. The RBI too issued new guidelines, according to which, jewellers can only buy gold on cash basis.The widenining deficit has also intensified the sharp depreciation in the Rupee against the US Dollar.Reliance Capital shares were down 0.3 percent at Rs 330 on NSE in morning trade.Also Read: Here's why bond market trading was suspended for 45 min Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
