Gold and Silver ETF Valuation Rules Changed: How SEBI’s New Framework Will Impact ETF NAV from April 2026? | Stock Market Today

Gold and silver ETF investors have a new rulebook to follow.

The Securities and Exchange Board of India has revised how physical bullion held under gold and silver ETF schemes will be valued. This change directly impacts how NAV is calculated. And in products like gold and silver ETF, valuation clarity matters.

The new framework will come into effect from 1 April 2026.

Let’s break down what this really means for the gold and silver ETF market in India.

Market Performance: Why Gold and Silver ETF Valuation Matters?

Gold and silver ETF products track physical bullion. Their NAV depends on the daily value of gold and silver held by the fund.

Until now, pricing was based largely on international benchmarks. But domestic gold markets often behave differently due to:

• Import duties
• Currency movement
• Local demand-supply dynamics
• Domestic premiums or discounts

Because of these variations, gold and silver ETF NAVs sometimes showed small differences in valuation methods across fund houses.

SEBI’s move aims to reduce this gap.

This matters because transparency and uniformity strengthen investor confidence, especially in gold and silver ETF schemes where pricing precision is critical.

Main News: What Has SEBI Changed for Gold and Silver ETF?

SEBI has modified the valuation methodology for physical gold and silver held by mutual fund schemes, including gold and silver ETF products.

Earlier:

• Valuation was linked to London Bullion Market Association (LBMA) AM fixing prices
• These international prices were converted into domestic value
• Adjustments were made for:
  • Currency conversion
  • Transportation costs
  • Customs duty
  • Taxes and levies
  • Notional premiums or discounts

Now:

• Gold and silver ETF valuation will be based on pooled spot prices published by recognised Indian stock exchanges
• These prices are derived from actual domestic market activity
• Currently, such spot prices are published by exchanges including the Multi-Commodity Exchange of India (MCX)

This shift anchors gold and silver ETF valuation more closely to Indian market realities.

How Gold and Silver ETF Were Valued Earlier?

Under the earlier framework, gold and silver ETF schemes used:

• LBMA international benchmark prices
• Adjusted for rupee conversion
• Added import duty and other costs

While this method followed global pricing standards, it relied heavily on overseas benchmarks.

That meant NAV calculation involved multiple assumptions.

Even minor differences in adjustment methods across asset managers could result in slight variations in gold and silver ETF pricing.

The structure of ETF products did not change.

But the pricing reference point was global.

New Valuation Framework for Gold and Silver ETF

From 1 April 2026, mutual funds must follow a new system.

Here is what changes:

• Use pooled spot price published by recognised Indian exchanges
• Spot price derived from physically delivered gold and silver derivatives contracts
• Exchange-regulated pricing mechanism
• Uniform adoption across all mutual fund houses

This brings domestic alignment.

Gold and silver ETF NAV will now reflect Indian exchange-published spot pricing rather than adjusted global benchmarks.

Why Domestic Spot Pricing Is Important?

The Indian bullion market operates differently from global markets.

Local factors that affect pricing:

• Domestic demand trends
• Festive season buying
• Import duty structure
• Currency fluctuations

Under the new system, the gold and silver ETF valuation will mirror actual settlement-based domestic prices instead of theoretical international benchmarks adjusted afterward.

That creates:

• Better pricing consistency
• Uniform NAV calculation
• Standardized methodology across fund houses

For investors tracking daily gold and silver ETF movement, this reduces valuation ambiguity.

Effective Date Investors Should Note

The revised gold and silver ETF valuation norms will be effective from:

1 April 2026

The framework is implemented under:

• SEBI (Mutual Funds) Regulations, 2026
• Regulations 22(9) and 63(9)
• Investment valuation norms under the Seventh Schedule

From that date onward, compliance will be mandatory for all mutual fund schemes holding physical gold and silver.

Role of AMFI in Gold and Silver ETF Valuation

SEBI has also clarified that the Association of Mutual Funds in India (AMFI) will formulate a uniform valuation policy in consultation with the regulator.

This ensures:

• Consistent adoption
• Standard polling mechanism
• Regulatory oversight

The pooled spot pricing mechanism itself must follow SEBI guidelines from time to time.

This adds another layer of transparency to gold and silver ETF pricing.

Company & Structural Impact on Gold and Silver ETF

Important clarification:

• The structure of gold and silver ETF remains unchanged
• The quantity of physical gold or silver held by schemes does not change
• Asset allocation remains the same

Only the daily valuation benchmark changes.

So this is not a structural shift. It is a pricing methodology refinement.

Over time, this may improve comparability across gold and silver ETF schemes.

NAV returns across similar ETFs are expected to remain closer to each other, subject to tracking difference.

Investor Impact: What Changes in Gold and Silver ETF NAV?

For retail investors:

• You will not see changes in how gold units are held
• You will not see alteration in ETF format
• You may see tighter NAV alignment across funds

The key shift is behind the scenes.

Gold and silver ETF daily pricing will now reflect:

• Indian exchange-published pooled spot rates
• Market-driven domestic settlement pricing

This strengthens transparency.

It reduces dependency on overseas benchmarks.

And it standardises valuation practices across asset management companies.

How This Impacts Transparency in Gold and Silver ETF Market?

In bullion-linked products, pricing accuracy builds trust.

The earlier system worked.

But it involved layered adjustments.

The new framework:

• Removes valuation gaps across funds
• Anchors price discovery within India
• Aligns with domestic regulatory oversight

This could make gold and silver ETF NAV tracking clearer for investors monitoring price movements daily.

Summary: Gold and Silver ETF Valuation Gets a Domestic Anchor

Here’s the complete picture:

• SEBI changes gold and silver ETF valuation norms
• International LBMA pricing method replaced
• Domestic pooled spot price from recognised exchanges to be used
• Effective from 1 April 2026
• Uniform policy to be framed by AMFI
• ETF structure unchanged
• Only valuation benchmark modified

Gold and silver ETF products remain the same investment vehicle.

But from April 2026, the pricing reference point shifts from global to domestic.

This is a technical change.

But in ETF markets, technical precision shapes transparency.

For investors in gold and silver ETF schemes, the takeaway is simple:

Same gold.

Same silver.

New valuation system.

And from 1 April 2026, NAV will speak the language of Indian exchange spot pricing.

Source: Livemint