New Delhi, February 26 The capital markets regulator, Sebi, on Thursday revised the valuation methodology for physical gold and silver held by mutual fund schemes, mandating the use of polled spot prices published by stock exchanges for calculating their value.
The spot prices used for settling physically delivered bullion derivatives contracts will now serve as the basis for pricing such holdings, replacing the earlier benchmark-linked approach.
This will come into effect from April 1, 2026, the Securities and Exchange Board of India (Sebi) said in its circular.
"It has been decided that, with effect from April 01, 2026, mutual funds shall value physical gold and silver by using the polled spot prices published by recognized stock exchanges, which are used for settling physically delivered gold and silver derivatives contracts," Sebi said.
Currently, gold and silver ETFs (exchange-traded funds) value their holdings based on the AM fixing prices of the London Bullion Market Association (LBMA), adjusted for currency conversion, transportation costs, customs duty, taxes, and other levies to arrive at domestic prices.
This move, in line with the Sebi (Mutual Funds) Regulations, 2026, aims to ensure that valuations better reflect domestic market conditions and promote uniformity and transparency.
The mutual fund industry body, Amfi, in consultation with Sebi, will prescribe a uniform policy for implementation.