New Delhi, Oct. 16 -- India's market regulator has directed mutual funds to bar fresh investments in gold mutual fund schemes, a move likely aimed at curbing demand for the precious metal, but it has left gold exchange-traded funds (ETFs) untouched, a gap that experts say could blunt the curbs because investors can still buy gold through the stock market.

The Securities and Exchange Board of India (Sebi) has asked mutual funds to stop accepting fresh lump-sum investments, systematic investment plans (SIPs) and systematic transfer plans (STPs) into gold ETF fund-of-funds (FoFs) from 16 October, two industry officials told Mint. The curbs currently do not apply to gold ETFs.

The move may be aimed at curbing gold imports and easing pressur...