Sebi revises valuation norms for gold, silver held by mutual funds; polled spot prices to be used from April 2026
Times of India
by TOI BUSINESS DESKFebruary 26, 2026
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The Securities and Exchange Board of India (Sebi) has updated its rules for valuing physical gold and silver held by mutual fund schemes. Starting April 1, 2026, these holdings must be valued using domestic spot prices from recognized stock exchanges, replacing the previous benchmark based on the London Bullion Market Association (LBMA). This change aims to align valuations with current domestic market conditions and enhance transparency across mutual funds.
Currently, gold and silver ETFs rely on LBMA's AM fixing prices, adjusted for factors like currency conversion and taxes. The new norms shift this to spot prices used in Indian bullion derivative contracts, ensuring a more localized valuation framework. This move reflects Sebi’s broader reforms to modernize the mutual fund sector, including revamped classification and naming standards.
Under these reforms, mutual funds will adopt uniform category names, such as equity or debt, for clarity. Additionally, life cycle funds have been introduced with goal-based strategies, adjusting their equity exposure over time. Portfolio overlap disclosures are also being tightened, requiring monthly updates on websites.
These changes aim to improve investor protection and market standardization. By reducing reliance on international benchmarks, Sebi seeks to better reflect domestic market dynamics, fostering a more equitable and transparent system for mutual fund valuations. This initiative underscores India’s ongoing efforts to strengthen its financial regulatory framework and enhance investor confidence in the capital markets.
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Originally published on Times of India on 2/26/2026