26-02-2026

- SEBI has made a major change to the valuation methodology for gold and silver ETFs. This new rule will come into effect April 1, 2026.

🔹 What has changed? -

What used to happen before? - The price of physical gold and silver held in ETFs was determined based on the AM fixing price of the London Bullion Market Association (LBMA). - This was then converted into rupees and the NAV was calculated by adding duties, taxes, and other expenses.

26-02-2026

- What will happen now? -

The valuation of gold and silver will now be based on the spot price of a recognized Indian exchange. -

This means that the NAV will now be determined directly according to domestic market prices.

🔹 Why was the change made?
✔ To better reflect the actual demand-supply dynamics of the Indian market
✔ To bring transparency and uniformity to valuations
✔ To reduce dependence on foreign benchmarks

26-02-2026

🔹 What does this mean for investors?

The NAV of gold and silver ETFs will now be more closely linked to the domestic spot price.

Movements may vary slightly from international prices.

The valuation process will be more clear and transparent.

26-02-2026

📌 Conclusion

This move by SEBI is considered important in aligning gold and silver ETFs with the Indian market. After April 1, 2026, ETF prices will directly reflect the domestic spot market, providing investors with more clear and accurate valuations.