Gold ETF (Exchange traded funds): Integration of Regulators required

Today Gold ETF are infusing new blood into the world of Investments. Simply put it provides an opportunity to an investor to deploy their money in various underlying assets like commodities, securities etc. it is much like a Mutual Fund except the fact that ETFs are traded in real time on exchange and do not have NAV.

Since, in Indian financial system we have a clear demarcation among regulators. But what happens when an investment carries underlying assets which are regulated by SEBI, RBI and Commodities regulators. An Gold ETFs need not necessarily comprised of Gold but securities, Forex, other commodities as well. In such a case we need to have a smooth integration of all financial regulators like SEBI, RBI and Commodities regulators to ensure the operation of Gold ETFs.