SEBI Proposes New Valuation Norms for Gold and Silver ETFs

SEBI report; Dated: 16.07.2025

The Securities and Exchange Board of India (SEBI) has released a consultation paper proposing a revision in the valuation methodology for physical gold and silver held by Exchange Traded Funds (ETFs).

1. Objective of the Proposal

The proposed changes aim to:

• Standardise the valuation process across the mutual fund industry for investments made in gold and silver through ETFs.
• Ensure greater consistency and transparency in valuation practices.
• Align valuations more closely with domestic market prices of gold and silver, rather than relying on potentially inconsistent or external benchmarks.

2. Implications for the Mutual Fund Industry

• The new methodology, if implemented, would lead to uniform valuation norms, ensuring fair and consistent pricing across all fund houses offering gold and silver ETFs.
• This move is expected to enhance investor confidence, reduce arbitrage opportunities, and strengthen regulatory compliance in the valuation of precious metal-backed funds.

3. Public Consultation Timeline

SEBI has invited public comments and stakeholder feedback on the proposal.

Last date to submit comments – August 6, 2025

Stakeholders, including fund houses, investors, and industry experts, are encouraged to review the paper and submit their suggestions for consideration.

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