The new norms will replace the existing benchmark-linked approach. The decision follows discussions in the Advisory Committee and a public consultation with stakeholders.
Sebi said that since stock exchanges are subject to transparency and compliance requirements under the regulatory framework, “using the spot price published by such regulated entities shall lead to valuation reflective of domestic market conditions and also ensure uniformity in the valuation practices.”
The new norms mean that gold and silver ETFs will now be valued using domestic exchange spot prices instead of international benchmarks.
For investors, this brings greater transparency and uniformity in Net Asset Value (NAV) calculations, making it easier to compare schemes.
Market experts note that while gold and silver ETFs track underlying metal prices, differences in valuation practices, tracking efficiency, and liquidity can result in small variations in returns across schemes.
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