The Securities and Exchange Board of India (SEBI) has issued a circular changing how mutual fund schemes must value physical gold and silver, moving to polled spot prices published by recognised stock exchanges that are used for settlement of physically delivered gold and silver derivatives contracts. The new approach applies from 1 April 2026 under the SEBI (Mutual Funds) Regulations, 2026. SEBI noted that the current framework values physical gold and silver held by gold and silver exchange traded funds using London Bullion Market Association AM fixing prices, adjusted for metric and currency conversions, transportation costs, customs duty, applicable taxes and levies, and a notional premium or discount to arrive at domestic valuations. Following Mutual Fund Advisory Committee discussions, public consultation and stakeholder engagement, SEBI concluded that using regulated exchange-published spot prices should better reflect domestic market conditions and promote uniform valuation practices. The spot polling mechanism must comply with SEBI’s spot polling guidelines as updated from time to time, and the Association of Mutual Funds in India, in consultation with SEBI, will prescribe a uniform policy for implementation.

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