June 5 (Reuters) - India's ICICI Prudential Asset Management Company said on Friday it has temporarily restricted subscriptions in its gold exchange-traded fund (ETF).
o The company said it will not accept direct subscriptions of more than 250 million rupees ($2.63 million) in the ETF until further notice. It did not mention a reason for the restriction.
o On Thursday, peer HDFC Mutual Fund also restricted lump-sum, or one-time, subscriptions in its gold ETFs, citing market conditions as strong demand for gold amid geopolitical uncertainty drives up inflows into such funds.
o Large inflows can be difficult for gold ETFs to absorb during periods of heavy demand.
o Indian gold ETFs have attracted net inflows of $3.48 billion so far this year.
($1 = 94.9450 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Editing by Sonia Cheema)
