SEBI has proposed a significant change in how Exchange Traded Funds (ETFs) that hold physical gold and silver are valued. Currently, based on global benchmarks like the LBMA price, ETF valuation may soon rely on domestic spot prices published by Indian commodity exchanges. This move aims to ensure consistency in valuation and better reflect actual market conditions in India.
Key Highlights –
‣ Shift from global (LBMA) prices to local spot prices
‣ Removes valuation gaps due to currency conversion and tax adjustments
‣ Exchanges must publish detailed polling mechanisms for spot price calculation
‣ Proposal open for public comments till August 6, 2025
