The SEBI gold silver ETF valuation rule change explained impact from April 2026 marks a significant development for investors and asset management companies in India. The Securities and Exchange Board of India (SEBI) has introduced a new framework for valuing physical gold and silver held by Exchange Traded Funds (ETFs) and mutual fund schemes.

This regulatory reform aims to align valuation methods with domestic market prices, improve transparency in pricing, and standardise valuation practices across mutual fund houses. The updated rules will officially come into effect on April 1, 2026, and will influence how gold and silver ETFs determine their daily Net Asset Value (NAV).

The SEBI gold silver ETF valuation rule change India is expected to bring greater consistency to the Indian bullion investment market while enhancing investor confidence.

Understanding Gold and Silver ETFs

Before analysing the regulatory changes, it is important to understand what gold and silver ETFs are and how they function.

A Gold ETF or Silver ETF is an investment instrument traded on stock exchanges that tracks the price of physical gold or silver. These funds invest primarily in physical bullion stored in secure vaults.

Each unit of a gold or silver ETF represents a certain quantity of the precious metal. Investors can buy or sell these units just like shares in the stock market.

The popularity of gold silver ETF latest news India investors has increased significantly over the past decade because these funds allow individuals to invest in precious metals without physically storing them.

However, the key factor that determines the value of ETF units is the Net Asset Value (NAV), which depends on the valuation of the underlying gold or silver held by the fund.

Why SEBI Introduced the New Valuation Rule

The SEBI gold ETF valuation change India was introduced to address discrepancies in how gold and silver prices were calculated across different mutual fund schemes.

Previously, most funds relied on international benchmark prices to determine the value of bullion holdings. However, these benchmarks often did not fully reflect the actual market price of gold and silver in India.

This created a situation where ETF valuations sometimes differed from the domestic bullion market prices, which could lead to inconsistencies in NAV calculations.

By introducing the SEBI gold silver ETF valuation rule, the regulator aims to ensure that valuations are based on prices that more accurately reflect Indian market conditions.

How Gold and Silver Were Valued Earlier

Before the rule change, gold and silver held in ETFs were typically valued using London Bullion Market Association (LBMA) AM fixing prices.

The LBMA benchmark is one of the most widely used global pricing references for precious metals. However, to apply these prices in India, several adjustments had to be made.

The valuation process included:

• Currency conversion from US dollars to Indian rupees

• Transportation costs

• Import duties

• Taxes and levies

• Premiums or discounts in the domestic market

While this method was internationally accepted, it relied heavily on overseas pricing benchmarks and multiple adjustments.

According to Niranjan Avasthi, Senior Vice President at Edelweiss Mutual Fund, this approach sometimes created differences between the calculated ETF valuation and the actual market price in India.

Some asset managers adjusted these discrepancies, while others did not, leading to variations in ETF NAVs across different schemes.

New Valuation Framework Introduced by SEBI

Under the silver ETF valuation rules SEBI 2026, the valuation methodology will shift from international benchmarks to domestic stock exchange spot prices.

From April 1, 2026, mutual funds must use pooled spot prices published by recognised Indian stock exchanges when calculating the value of gold and silver held in ETFs.

Currently, these prices are provided by exchanges such as the Multi Commodity Exchange of India (MCX).

The MCX gold silver spot price ETF valuation system relies on actual market activity, settlement prices, and trading data from physically delivered bullion derivatives contracts.

This approach ensures that ETF valuations reflect real-time supply and demand conditions within the Indian market.

Benefits of the New SEBI Valuation System

The SEBI gold silver ETF valuation rule change explained impact from April 2026 offers several benefits for investors and the broader financial ecosystem.

Greater Transparency

One of the biggest advantages of the new system is improved transparency in ETF pricing. Since valuations will be based on domestic exchange prices, investors will have a clearer understanding of how ETF NAVs are calculated.

Uniform Valuation Across Mutual Funds

Previously, different asset management companies sometimes used slightly different assumptions when adjusting international benchmark prices.

Under the new framework, all mutual funds will follow the same domestic pricing reference, ensuring uniformity in valuation practices.

Closer Alignment With Domestic Market

Gold and silver prices in India often differ slightly from global benchmarks due to local demand, import duties, taxes, and logistics costs.

By using domestic exchange prices, the new rule ensures ETF valuations better reflect the actual Indian bullion market.

Regulatory Framework Behind the Rule Change

The SEBI mutual fund regulations bullion valuation update is supported by amendments under the SEBI (Mutual Funds) Regulations, 2026.

The updated rules are linked to:

• Regulation 22(9)

• Regulation 63(9)

• Investment valuation norms under the Seventh Schedule

These provisions provide the legal and regulatory foundation for implementing the new valuation methodology across mutual fund schemes.

Role of AMFI in Implementing the New Policy

The Association of Mutual Funds in India (AMFI) will play an important role in implementing the revised valuation framework.

SEBI has stated that AMFI will consult with the regulator to establish a uniform policy for applying the new pricing system.

This policy will guide asset management companies on:

• Using exchange-based spot prices

• Standardising valuation procedures

• Ensuring compliance with regulatory guidelines

The spot polling mechanism used for determining exchange prices must also comply with SEBI guidelines issued from time to time.

This collaborative approach between SEBI and AMFI is expected to ensure smooth implementation of the new rules across the mutual fund industry.

Impact on Investors

For investors, the SEBI gold silver ETF valuation rule change India does not alter the basic structure of gold or silver ETFs.

The amount of physical gold or silver held by the fund remains unchanged, and the ETF units continue to represent ownership in the underlying bullion.

However, the change refines how the value of that bullion is calculated on a daily basis.

This means that investors may notice more consistent and predictable NAV calculations across different ETFs tracking gold or silver.

Over time, the rule may also reduce discrepancies between ETF prices and actual domestic bullion market prices.

What Investors Should Expect After April 2026

Once the silver ETF valuation rules SEBI 2026 come into effect on April 1, 2026, all mutual fund houses must comply with the updated methodology.

Investors may observe:

• More accurate ETF NAV calculations

• Closer alignment between ETF prices and domestic bullion markets

• Reduced variation between different ETF schemes

However, it is important to note that gold and silver prices themselves will still fluctuate based on global market trends, currency movements, and domestic demand.

The new rule simply ensures that ETF valuations reflect the Indian market more accurately.

Importance for the Indian Bullion Investment Market

The SEBI gold silver ETF valuation rule change explained impact from April 2026 is also important for the broader bullion investment ecosystem.

India is one of the largest consumers of gold in the world, and precious metals play a significant role in both investment portfolios and cultural traditions.

As more investors move toward digital investment products like ETFs, ensuring transparent valuation mechanisms becomes increasingly important.

By shifting toward MCX gold silver spot price ETF valuation, SEBI is strengthening the credibility and efficiency of the Indian precious metals investment market.

Conclusion

The SEBI gold silver ETF valuation rule change explained impact from April 2026 represents a major regulatory reform aimed at improving transparency and consistency in bullion-backed investment products.

By shifting valuation from international LBMA benchmark prices to domestic exchange spot prices, SEBI has taken a step toward aligning ETF pricing with actual Indian market conditions.

The rule ensures greater transparency, uniform valuation practices, and improved investor confidence in gold and silver ETFs.

For investors, the change may seem technical, but it is an important step toward building a more reliable and transparent bullion investment ecosystem in India.

As the new rules take effect from April 1, 2026, both investors and asset managers will benefit from more accurate and standardised valuation of gold and silver ETF holdings.

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