India relaxes $384 billion stock fund investment restrictions, allowing increased holdings of gold and silver

India's market regulator has allowed the country's $384 billion actively managed equity funds to allocate more capital to gold and silver, granting funds greater flexibility amid rising global demand for hard assets. According to revised rules from the Securities and Exchange Board of India, equity funds can now invest up to 35% of their remaining portfolio assets in gold, silver instruments, and infrastructure investment trust units. By expanding the range of investable assets, the regulator is providing equity funds with a richer set of investment tools; previously, these funds could already invest in money market and other liquid securities. This move may also create new sources of demand for gold and silver, as precious metals have already attracted strong investor interest during the current significant rally.