June 23, 2013
Reliance Capital has decided not to sell gold as an investment product, in a press release that defies imagination:
Reliance Capital, a part of the Reliance Group, strongly supports
the Government’s publicly stated objective of minimizing gold imports that are seriously
hurting the country’s economic interests.
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.
In addition, Reliance Capital’s Commercial Finance Division has decided to suspend
financing against gold as a security.
Further, Reliance Capital Asset Management (RCAM), a part of Reliance Capital, has
decided to suspend new subscriptions in Reliance Gold Savings Fund. Existing SIP
investors will not be affected by this decision
This doesn’t make too much sense. I don’t believe that any such stopping of gold sales is in any way related to helping the government or anything like that. Colour me cynical, but businesses aren’t built on such shallow patriotism. Plus, if the group that owns Reliance Capital cared about India’s economic interests, they wouldn’t be trying to launder money (alleged in a UK tribunal order against a UBS …
Original Source: http://capitalmind.in