Gold, Silver ETF Regulations to Change from April 1, Here’s What You Need to Know

India’s market regulator is overhauling how mutual funds and exchange-traded funds (ETFs) value their gold and silver holdings. From April 1, 2026, funds that keep physical bullion will have to use exchange-published polled spot prices—the same references used to settle physically delivered gold and silver derivatives. This shift aligns with the updated Mutual Funds Regulations set to take effect in 2026 and was flagged earlier this year.

What exactly is changing?

Until now, valuation of physical gold and silver in mutual fund portfolios could lean on various benchmarks or vendor feeds. The new framework standardizes that process: recognized stock exchanges will publish polled spot prices, compiled from multiple market participants, and those figures will become the official yardstick for valuing physical bullion across funds. In short, one consistent source will drive how net asset values (NAVs) are calculated for gold and silver exposures.

Who will be affected?

• Gold ETFs and Silver ETFs that hold physical bullion.
• Fund-of-funds that invest in bullion ETFs.
• Hybrid and multi-asset schemes with allocations to physical gold or silver.

Why this matters to investors

• Greater consistency: A unified pricing reference reduces variations in how different funds mark their bullion, making NAVs more comparable across products.
• Better transparency: Polled spot prices sourced from exchanges are designed to reflect real-time market inputs used for derivatives settlement.
• Tighter tracking: By aligning valuation with exchange benchmarks, funds may show NAVs that more closely mirror the domestic spot market for gold and silver.
• Potentially different day-to-day moves: As pricing becomes more standardized, investors could notice changes in how NAVs react to intraday shifts in bullion markets.

Timeline and implementation

A circular dated February 26 set the stage for the new approach, with the go-live slated for April 1, 2026. In the lead-up, asset managers and valuation agencies will need to update their internal policies, systems, and disclosures. Expect scheme documents and factsheets to spell out the revised methodology as the effective date approaches.

How polled spot pricing works

Exchanges collect spot price inputs from a network of qualified market participants and aggregate them into a reference rate. This rate is also used to settle physically delivered gold and silver derivatives on the exchanges. Tying mutual fund valuation to this same mechanism helps synchronize cash and derivatives markets and reduces the scope for divergent pricing sources.

What investors should watch

• Methodology updates: Keep an eye on scheme information documents and AMC notices describing the switch to exchange-published polled prices.
• Premiums and discounts: Market prices of ETFs can diverge from NAV. A standardized NAV input could influence how premiums/discounts behave around rebalance windows.
• Tracking behavior: As valuation aligns with exchange benchmarks, tracking patterns versus domestic spot prices may look different than before.
• Operational readiness: Ahead of April 2026, funds may communicate test runs or dry phases; note any temporary variances during transition.

What stays the same

• The underlying exposure of gold and silver ETFs remains focused on physical bullion.
• Core fund mechanics—creation/redemption baskets, custody, and security of physical assets—continue under existing controls, with valuation being the key element that changes.

Quick FAQ

When does the new valuation kick in?
From April 1, 2026.

Which assets are covered?
Physical gold and silver held by mutual fund schemes, including bullion-focused ETFs and related fund-of-funds.

What price will funds use?
Polled spot prices published by recognized stock exchanges, the same benchmarks used for settling physically delivered gold and silver derivatives.

Why adopt this standard?
To bring uniformity, transparency, and closer alignment between cash and derivatives markets.

Does this change my holdings?
The change affects valuation methodology, not the fundamental exposure. NAV calculations may exhibit different intraday dynamics once the new pricing source is in place.

Bottom line: mark your calendar for April 1, 2026. As the new rules bed in, expect more consistent valuation across gold and silver funds—and read scheme communications for the fine print as the industry transitions to exchange-published polled spot prices.

This article is for information only and should not be treated as investment advice.