Home / Business and Economy / Sebi Overhauls Gold, Silver Valuation Rules
Sebi Overhauls Gold, Silver Valuation Rules
26 Feb
Summary
- Sebi mandates use of polled spot prices from recognized exchanges.
- New valuation framework for physical gold and silver effective April 1.
- Shift moves away from London benchmark for daily NAV calculations.
India's capital markets regulator, Sebi, has announced a significant change in how mutual funds value their holdings of physical gold and silver. Starting April 1, 2026, fund houses will be required to use polled spot prices published by recognized stock exchanges for settling physically delivered derivatives contracts. This new framework replaces the current practice of valuing these assets based on the London Bullion Market Association's AM fixing prices, which were then adjusted for various domestic factors.
The decision follows extensive consultations and aims to ensure that the daily net asset value of gold and silver schemes more accurately reflects domestic market conditions. By shifting to recognized domestic exchanges, Sebi expects to foster greater transparency and uniformity in valuation practices across the mutual fund industry. The Association of Mutual Funds in India will collaborate with Sebi to establish a uniform policy for this transition.
