Major change in gold and silver ETFs, a new rule comes into effect from April 1, 2026

New rule for gold-silver ETFs: Under SEBI's new rule, starting April 1, 2026, the value of gold and silver ETFs will be determined by the spot price on Indian stock exchanges instead of foreign rates.

New rule for gold-silver ETFs: India's market regulator, the Securities and Exchange Board of India (SEBI), has changed the rules for mutual funds and ETFs investing in gold and silver. Simply put, their value will now be determined by the spot price published on Indian stock exchanges, not foreign rates. This rule will come into effect from April 1, 2026.

What used to happen before?

Until now, the value of gold and silver ETFs was determined by the London rate of the London Bullion Market Association (LBMA).

Then, that price

was converted from dollars to rupees.

Taxes and customs duties were added.

Transport costs were added.

Only then was its price determined in India.
This means that the Indian market rate was not directly taken.

What will change now?

Mutual fund companies will now determine the price of gold and silver based on the spot price published on the Indian stock exchange.
This means that the NAV (Net Asset Value) of the ETF will be determined based on the actual domestic market rate.

What benefits investors?

Greater transparency: Understanding prices will now be easier. There will be no hassle of adding and subtracting foreign rates.
Easier comparison of schemes: The previously small differences in returns between different gold ETFs may be reduced.
Direct link to the domestic market: Now, prices will appear more accurate according to Indian demand and supply.

When will this rule come into effect?

This new rule will come into effect from April 1, 2026. To implement this, the Association of Mutual Funds in India (AMFI) will also work with SEBI to develop a uniform policy so that all mutual fund companies follow the same approach.