Applicable only for Authorised Participants and Eligible Investors
Calculation of Cash Component
‘Creation Unit Size’ is the number of QGF units, which is exchanged for the Portfolio
Deposit and cash component. Presently the creation unit size is
units and is equivalent to 1 kg of physical gold. The Fund may from time to time
change the size of the creation unit size in order to equate it with marketable
lots of the underlying instruments.
The Portfolio Deposit shall consist of physical gold of defined purity and quantity,
and the cash component represents the difference between the applicable NAV of units
in creation unit size and the market value of physical Gold.
The facility of creating/redeeming units in creation unit size will be available
only for the Authorised Participants and large or eligible investors as defined
in the Offer Document.
Who are Authorized Participants and what is their role? Who are Eligible Investors?
The Authorised Participants (APs) are appointed by the AMC. They act as market makers
to improve the liquidity of the ETF on the exchanges. The APs provide quotes in
the exchange and ensure that investors have a ready buyer and seller any time they
wish to enter into a transaction during market hours. After the NFO, only authorized
participants and eligible investors can create/ redeem units directly with the fund.
Eligible investors are investors who buy units in creation unit size. Eligible investors
can directly create or redeem the units in lieu of physical gold of 1 kg and multiples
thereof from the AMC if they so desire. Please do refer to the offer document for
more information and the terms and conditions for the same.