SEBI Revises Gold and Silver Valuation Norms for Mutual Funds

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  • Last Updated on 1 March, 2026

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SEBI gold silver valuation

Circular no. HO/(68)2026-IMD-POD-2/I/5780/2026; Dated: 26.02.2026

The Securities and Exchange Board of India (SEBI) has revised the valuation framework for physical gold and silver held by mutual fund schemes, including Gold and Silver Exchange Traded Funds (ETFs). The change follows deliberations in the Mutual Fund Advisory Committee (MFAC), public consultation, and discussions with stakeholders.

1. Existing Valuation Methodology

Under the existing regulatory framework, physical gold and silver held by Gold and Silver ETFs are valued based on the AM fixing prices of the London Bullion Market Association (LBMA).

The final domestic valuation is determined after making adjustments for:

  • Metric and currency conversions
  • Transportation costs
  • Customs duties
  • Applicable taxes and levies
  • Notional premium or discount to reflect domestic market conditions

2. Revised Valuation Approach

SEBI has now decided that mutual funds must value physical gold and silver using polled spot prices published by recognised stock exchanges instead of the LBMA benchmark.

This shift is intended to align valuation practices more closely with domestic market prices and enhance transparency in valuation.

3. Compliance with Spot Polling Guidelines

The spot polling mechanism adopted by recognised stock exchanges must comply with SEBI’s prescribed spot polling guidelines, as updated from time to time.

Mutual funds are required to ensure that valuations are based on such compliant and recognised spot price polling systems.

4. Effective Date

The revised valuation framework will come into effect from 1 April 2026.

From this date onwards, all mutual fund schemes holding physical gold and silver must adopt the new valuation methodology based on polled spot prices of recognised stock exchanges.

5. Objective of the Revision

The revised framework seeks to:

  • Align valuations with domestic market dynamics
  • Enhance transparency and accuracy in valuation of precious metals
  • Strengthen investor confidence through market-linked pricing
  • Ensure uniformity across mutual fund schemes holding gold and silver

Mutual funds will need to update their valuation policies and systems to ensure compliance with the revised SEBI guidelines within the prescribed timeline.

Click Here To Read The Full Circular

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied