Reliance Capital suspends gold sales

Mumbai, June 21 (IANS) Reliance Capital has decided to suspend sale of gold in physical form and also as an investment product across all its businesses and subsidiaries, the company said here Friday.

It said the company has taken this move as a strong support to the government's publicly stated objective of minimizing gold imports that are seriously hurting the country's economic interests.

"Reliance Capital is committed to support all policy objectives of the government and the RBI. We sincerely hope that all stakeholders across business, trade and industry will act in a responsible manner to minimize gold imports that have placed an unbearable burden on the Current Account Deficit (CAD), and are severely hurting the country's growth prospects" said Sam Ghosh, chef executive officer, Reliance Capital.

"Reliance Capital's Commercial Finance Division has decided to suspend financing against gold as a security," the statement said.

Reliance Capital Asset Management (RCAM), a part of Reliance Capital, has also decided to suspend new subscriptions in Reliance Gold Savings Fund. However, it said, existing SIP investors will not be affected by this decision.

These decisions are subject to necessary regulatory approvals.


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