National Stock Exchange on Thursday said that it will not be launching the gold exchange traded funds (ETFs) as of now.

This is said to have been done to stop the start of another possible conflict between the regulators. The current one between IRDA and SEBI over the Ulips has already been going on for a very long time.     

Had the Gold ETFs been launched then the tussle between NSE and the Forward Markets Commission (FMC) would have arise. FMC is the regulatory body for the commodities and had intervened saying that the dealings of such issues are a part of its jurisdiction and not that if SEBI.

NSE had taken permission from SEBI for launching the ETFs in the segment of futures & options.

In its circular, the stock exchange said, "In view of the concerns raised by another regulator, the exchange in consultation with Securities and Exchange Board of India (SEBI) has deferred the launch (of F&O on Gold ETFs) till further notice."

FMC was supposed to issue its circular, but since the launch was stopped it did nothing of the sort.

Gold, as a commodity comes under the purview of Forward Contracts Regulation Act (FCRA).