After HDFC MF, ICICI Prudential AMC Stops Large Subscription For Gold ETFs

ICICI Prudential Asset Management Company informed investors that the board has approved temporary restrictions on subscriptions of ICICI Prudential Gold ETF (Gold ETF) with effect from the close of market hours of June 05, 2026.

Subscriptions in Gold ETF directly with ICICI Prudential Asset Management Company Limited (AMC) by eligible investors for an amount exceeding Rs 25 crores will not be accepted till further notice, the AMC said.

The restriction applies only to subscriptions made directly with the asset management company and will not affect Market Makers or Authorized Participants, who will continue to have access under existing arrangements.

ICICI Prudential Asset Management Company did not specify a timeline for lifting the restriction

or provide detailed reasons for the move.

India’s HDFC Mutual Fund last week announced that it has temporarily restrict lump-sum, or ‌one-time, subscriptions in its gold exchange-traded funds (ETFs), citing broader economic and market conditions.

The ​fund house said it will suspend direct ​subscriptions of 250 million Indian rupees ($2.61 million) and ⁠above from large investors in the HDFC ​Gold ETF, which invests in gold bullion, ​from June 8.

It also capped new investments in the HDFC Gold ETF Fund of Fund, which primarily invests ​in units of the HDFC Gold ETF, ​at 1 million rupees per investor per month from 3 ‌p.m. ⁠IST on June 5.

The move follows ​strong investor ⁠demand for gold funds, record inflows into gold ETFs and ​elevated gold prices, as investors continue to ​rely ⁠on the safe-haven asset amid geopolitical turmoil and economic uncertainty.

Meanwhile, Indian government is pushing hard to reduce gold import bill amid the pressure on the forex reserve.