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SEBI Plans Domestic Spot Pricing for Gold and Silver ETFs

17 July 20251 min read
BANKING & FINANCESEBI PlansDomestic SpotPricing for Goldand Silver ETFs17 July 2025safalsetu.com

Why in the news

A SEBI consultation paper seeks to tie ETF valuation of bullion more closely to Indian market conditions.

Key facts

  • Aim: align NAVs with real local prices and cut mismatches in volatile or thin sessions.
  • All gold and silver ETFs must change their NAV valuation process.
  • Affects daily NAV disclosures and possibly flows.

Valuation basis

NowProposed
LBMA international pricesDomestic commodity exchange spot prices

Impact

  • Every AMC running gold or silver ETFs must switch its valuation process.
  • Perceived pricing accuracy may influence inflows and outflows.

Exam angle

  • Document: consultation paper.
  • Benchmark now: LBMA.

Test yourself

1. Which international benchmark do mutual funds currently use to value gold and silver ETFs?

Funds currently value holdings on LBMA prices.

2. What did SEBI propose as the new valuation basis for ETF gold and silver?

SEBI proposed spot prices from domestic commodity exchanges like MCX.

3. Which regulator released the consultation paper on gold and silver ETF valuation?

SEBI released the consultation paper.