Securities and Exchange Board of India Revises Gold, Silver ETF Valuation Norms from April 1, 2026

In a circular issued on February 26, 2026, SEBI stated that mutual funds shall value physical gold and silver using the polled spot prices published by recognised stock exchanges. These are the prices used for the settlement of physically delivered gold and silver derivatives contracts. The regulator added that the spot polling mechanism must comply with guidelines specified by SEBI from time to time.

Shift from LBMA AM Fixing to Domestic Spot Prices

At present, gold and silver Exchange Traded Funds (ETFs) value their physical holdings based on the AM fixing prices of the London Bullion Market Association (LBMA). Under the existing framework, LBMA prices are adjusted for metric and currency conversions, transportation costs, customs duty, applicable taxes and levies, along with a notional premium or discount to arrive at domestic valuations.

With the revised framework, mutual funds will now use domestic spot prices published by regulated stock exchanges. SEBI said that since exchanges operate under strict transparency and compliance requirements, using such spot prices will lead to valuations that better reflect domestic market conditions and ensure uniformity in valuation practices.

The decision follows discussions in the Mutual Fund Advisory Committee and a public consultation process with stakeholders.

Implementation Framework by AMFI

The Association of Mutual Funds in India (AMFI), in consultation with SEBI, will prescribe a uniform policy for implementing the revised valuation mechanism. The regulator said the move has been taken to protect investor interests, promote the development of the securities market, and regulate valuation practices more effectively.

What the Change Means for Investors

From April 1, 2026, gold and silver ETFs will no longer rely on international LBMA-linked pricing but instead use domestic exchange-published spot prices. For investors, this brings greater transparency and uniformity in Net Asset Value (NAV) calculations and makes it easier to compare schemes.

While gold and silver ETFs track underlying metal prices, differences in valuation practices, tracking efficiency, premiums or discounts applied by asset management companies, liquidity and tracking error have historically led to small variations in returns across schemes. A uniform spot-based valuation mechanism is expected to reduce such discrepancies and enhance comparability.

Gold and silver ETFs have so far followed LBMA-linked prices rather than domestic rates, which partly explains the gap between ETF prices and physical metal prices in India.

Gold ETF & Silver ETF Inflows

Inflows into gold ETFs more than doubled compared to December 2025, reaching ₹24,039 crore in January 2026. Monthly net inflows into gold ETFs surpassed investments in equity mutual funds, which stood at ₹24,028 crore during the month.

Silver ETFs recorded a net inflow of ₹9,463 crore in January 2026. In the year through January 2026, gold ETFs recorded total net inflows of ₹63,249 crore.

With strong returns, record inflows, and a revised domestic valuation framework coming into effect from April 2026, gold and silver ETFs are set to operate under a more transparent and standardised pricing mechanism.