Sebi Proposes Revamp of Gold and Silver ETF Valuation

Sebi is considering revising the valuation methodology for physical gold and silver held by mutual funds through ETFs. The proposal includes using domestic spot prices instead of LBMA prices to ensure consistent valuations. Public comments are open until August 6 on these new measures.

The Securities and Exchange Board of India (Sebi) is contemplating a significant overhaul of how physical gold and silver held by mutual funds are valued.

In an effort to enhance consistency, Sebi has suggested that asset management companies (AMCs) utilize spot prices from domestic commodity exchanges for valuations, departing from the current reliance on the London Bullion Market Association (LBMA) pricing.

This shift aims to simplify the process by aligning valuations more closely with the domestic market's supply and demand. The proposed changes are open for public feedback until August 6.

(With inputs from agencies.)