Several leading asset management companies in India restricted subscriptions to gold ETFs and related feeder funds on Thursday.

Several leading asset management companies in India announced on Thursday that they are imposing subscription restrictions on gold exchange-traded funds and related fund of funds products. At least six institutions, including Tata Mutual Fund, ICICI Prudential Asset Management, HDFC Mutual Fund, Aditya Birla Sun Life Asset Management, and DSP, each filed documents on Thursday evening to announce the above restrictive measures. Although the asset management institutions did not explain the reasons for the decision, it is widely believed that the move comes against the backdrop of a weakening Indian rupee and persistently strong market demand for allocating precious metals through ETFs.