Valuation of physical Gold and Silver held by mutual fund schemes
Summary
This circular mandates that mutual funds value physical Gold and Silver using polled spot prices from recognized stock exchanges effective April 1, 2026. The change replaces the previous valuation method based on London Bullion Market Association (LBMA) fixing prices to ensure alignment with domestic market conditions. AMFI is tasked with prescribing a uniform policy for this new valuation mechanism in consultation with SEBI.
Text
Physical Gold and Silver held by Gold and Silver ETFs is valued at AM fixing prices of LBMA, adjusted for conversions, costs, duties, taxes, and premiums/discounts.
Polled spot prices published by recognized stock exchanges are adopted to reflect domestic market conditions and ensure uniformity in valuation practices.
With effect from April 01, 2026, mutual funds shall value physical Gold and Silver using polled spot prices published by recognized stock exchanges used for settlement of physically delivered derivatives contracts.
The spot polling mechanism shall comply with the spot polling guidelines as specified by SEBI from time to time.
AMFI in consultation with SEBI shall prescribe a uniform policy in this regard.
This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange read with Regulation 77 of SEBI (Mutual Funds) Regulations, 1996.
Source: SecMarx — Valuation of physical Gold and Silver held by mutual fund schemes. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.