The Securities and Exchange Board of India (SEBI) on February 26, 2026, issued a circular regarding the valuation of physical Gold and Silver held by mutual fund schemes.
Under the earlier framework, physical gold and silver held by ETFs were valued using AM fixing prices of the London Bullion Market Association, with adjustments for currency conversion, transportation, duties, taxes, and domestic premiums or discounts. After stakeholder consultation, regulators determined that using polled spot prices published by recognized stock exchanges would better reflect domestic market conditions and improve transparency and uniformity in valuation.
Accordingly, the Securities and Exchange Board of India has mandated that from April 01, 2026, mutual funds must value physical gold and silver based on stock exchange–published polled spot prices used for settlement of physically delivered derivatives contracts, in line with SEBI (Mutual Funds) Regulations, 2026. The Association of Mutual Funds in India, in consultation with SEBI, will prescribe a uniform implementation policy to standardize valuation practices across the industry.
[Circular No. HO/(68)2026-IMD-POD-2/I/5780/2026]
