MFs to value gold, silver ETF with spot Comex prices

From April 1, mutual funds will value physical Gold and Silver by using the polled spot prices published by the recognised stock exchanges | Photo Credit: matejmo

Capital market regulator has directed mutual funds to value their physical gold and silver using the polled prices, which are used for settling derivatives contracts of recognised stock exchanges.

AMFI in consultation with SEBI will prescribe a uniform policy and the new valuation norms will come into effect from April 1.

As per the existing regulatory framework, physical gold and silver held by Gold and Silver Exchange Traded Funds (ETFs) are valued at AM fixing prices of the London Bullion Market Association. The final valuations are arrived at after adjusting the LBMA prices with necessary metric and currency conversions, addition of transportation costs, customs duty, applicable taxes and levies and factoring in notional premium or discount to arrive at domestic valuations.

Price valuation

After discussions in the Mutual Fund Advisory Committee (MFAC), public consultation and discussion with all stakeholders, it was deliberated that polled spot prices published by recognised stock exchanges may be used for the valuation of Gold and Silver held by mutual fund schemes.

As stock exchanges are subject to transparency and compliance requirements under the regulatory framework, using the spot price published by such regulated entities shall lead to a valuation reflective of domestic market conditions and also ensure uniformity in the valuation practices, said Sebi.

Accordingly, SEBI said it has been decided that from April 1, mutual funds will value physical Gold and Silver by using the polled spot prices published by the recognised stock exchanges, which are used for settlement of physically delivered gold and silver derivatives contracts.

Published on February 26, 2026