Sebi revises valuation methodology for gold, silver held by mutual funds

New Delhi: 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 the worth.

The spot prices used for settlement of physically delivered bullion derivatives contracts will now form the basis for pricing such holdings, replacing the earlier benchmark-linked approach. This will become effective from April 1, 2026, the Sebi said in its circular.

“It has been decided that with effect from April 01, 2026...the mutual funds shall 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,” Sebi said.

Currently, gold and silver ETFs 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.

The move, aligned with the Sebi (Mutual Funds) Regulations, 2026, aims to ensure valuations better reflect domestic market conditions and promote uniformity and transparency.