ICICI Prudential Mutual Fund Temporarily Restricts Large Subscriptions in Gold ETF

ICICI Prudential Asset Management Imposes Temporary Restriction on Large Subscriptions

ICICI Prudential Asset Management Company has announced a temporary restriction on large subscriptions into its ICICI Prudential Gold ETF, effective from the close of market hours on June 5, 2026. The Board of ICICI Prudential Trust Ltd., the parent entity of the asset management company, has approved the suspension of direct subscriptions exceeding Rs 25 crore in the Gold Exchange Traded Fund (ETF) by eligible investors until further notice.

This 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. The fund house stated that all other provisions of the Scheme Information Document (SID) and Key Information Memorandum (KIM) of the scheme remain unchanged. The notice serves as an addendum to the existing scheme documents and forms an integral part of them.

ICICI Prudential Asset Management Company did not specify a timeline for lifting the restriction or provide detailed reasons for the move. The announcement comes on the heels of a similar move by HDFC AMC, which announced restrictions on lump-sum subscriptions in HDFC Gold ETF and HDFC Gold ETF Fund of Fund on June 4.

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This development highlights the increasing scrutiny of large investments in gold ETFs, with both HDFC AMC and ICICI Prudential Asset Management Company imposing restrictions on direct subscriptions exceeding Rs 25 crore.