Indian mutual funds stop bulk subscriptions to gold ETFs ahead of festive season

By Ira Dugal and Rajendra Jadhav MUMBAI, Oct 15 (Reuters) — Several large Indian mutual funds issued public notices late on Thursday suspending bulk subscriptions to gold exchange-traded funds, just ahead of the festive season when investor demand typically rises. The notices from the fund houses, including Kotak Mahindra Mutual Fund, UTI Mutual Fund and HDFC Mutual Fund, did not cite a reason for the move. There is no restriction on redemptions from these funds. The decision was taken following a nudge from the Securities and Exchange Board of India, according to a mutual fund executive familiar with the discussions. Two bullion industry officials confirmed the halt had followed discussions with the market regulator. The sources declined to be identified as they are not permitted to comment on discussions with the regulator. A spokesperson for SEBI did not respond to a Reuters request for comment outside business hours. The Indian rupee has been under pressure this year due to a surge in global oil prices, which have inflated the country's import bill, and heavy selling by foreign investors in Indian equities. Strong demand for gold has further weighed on the currency, prompting t