Sebi Overhauls Gold-Silver Valuation for Mutual Funds

Securities and Exchange Board of India (Sebi) has revised the methodology for valuing physical gold and silver in mutual fund schemes. The regulator now mandates the use of polled spot prices published by stock exchanges, effective April 1, 2026, to ensure market conditions are more accurately reflected.

In a significant move, the Securities and Exchange Board of India (Sebi) announced a revision in the valuation methodology for physical gold and silver held by mutual funds. The regulator has mandated the use of polled spot prices published by stock exchanges to determine the worth of these holdings.

The new valuation method, which replaces the older benchmark-linked approach, will take effect from April 1, 2026, according to Sebi's recent circular. This transition aims to ensure that valuations align more closely with domestic market conditions.

Mutual funds have been using AM fixing prices of the London Bullion Market Association (LBMA) for valuations, adjusted for various factors. With the new policy, Sebi, in collaboration with the mutual fund industry's body Amfi, seeks to promote uniformity and transparency in the valuation process.

(With inputs from agencies.)