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Gold Silver ETF New Rules
highlights
- There is big news for people investing in gold and silver.
- SEBI has decided to change the way it values physical gold and silver held in mutual fund schemes.
- The price of gold and silver ETFs is determined by the amount of gold and silver they hold.
Gold-Silver ETF New Rules: There is big news for people investing in gold and silver. Securities and Exchange Board of India (SEBI), the market regulator, has decided to change the way of valuing physical gold and silver held in mutual fund schemes.
This new rule will come into effect from 1 April 2026. The purpose of this change is that the process of determining the prices of gold and silver should be clean and the same for everyone. Let us know what the big impact is going to be on investors after the implementation of the new rules.
Till now the value of Gold-Silver ETF was decided like this
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The price of gold and silver ETFs is determined by the amount of gold and silver they hold. Its real price is decided in the international market. Specifically, the AM fixing price of the London Bullion Market Association (LBMA) is used as the basis. This price is in dollars, which is then converted into Indian rupees.
Apart from this, the final price of ETF is decided by adding transport expenses, custom duty, taxes and other domestic expenses. That is, actually its value depends on the prices abroad, but it is changed according to the conditions of India.
What will change for investors in the new rules: 10 big things
- SEBI has changed the way of determining the price of gold and silver in mutual funds.
- Earlier this price was decided on the basis of foreign market.
- Now the price will be decided on the spot price of recognized stock exchanges of India.
- Spot price means the price at which gold and silver are being bought and sold in India at the same time.
- Mutual funds will now decide the price of gold and silver from this Indian spot price.
- The same spot price is also used in gold and silver derivative contracts for physical delivery.
- This will make the price fixing process more clean and transparent.
- The price will now appear accurate as per the Indian market.
- SEBI has taken expert and public opinion before taking this decision.
- Investors will know the real value of gold and silver in mutual funds and confidence will increase.
These will be big changes
AMFI will now decide that all mutual funds should adopt the same method of arriving at the value (NAV) of schemes like gold and silver. This means that there will not be much difference in the NAV of different funds and investors will know the exact status of their investments. This change will have the biggest impact on those who have invested money in gold or silver ETFs, because now their price will be directly linked to the market price (spot price) of the country. This will assure investors that their money is being updated according to the actual market value.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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