Comment on SEBI's Consultation Paper on review of valuation of physical gold and silver held by gold and silver Exchange Traded Funds (ETFs) by Akshat Garg, AVP, Choice Wealth

2025-07-17 10:45:56 am | Source: Choice Wealth

Comment on SEBI's Consultation Paper on review of valuation of physical gold and silver held by gold and silver Exchange Traded Funds (ETFs) by Akshat Garg, AVP, Choice Wealth

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Below the Comment on SEBI's Consultation Paper on review of valuation of physical gold and silver held by gold and silver Exchange Traded Funds (ETFs) by Akshat Garg, AVP, Choice Wealth

SEBI’s proposal to shift gold and silver ETF valuation from LBMA-based pricing to domestic commodity exchange spot rates is a significant reform. It brings uniformity across AMCs, eliminates subjective premium/discount adjustments, and aligns NAVs more accurately with local demand-supply conditions. This simplifies operations, enhances transparency, and strengthens investor confidence. As India witnesses rising gold ETF inflows amid global uncertainty, this move could boost both retail and institutional participation. While care must be taken to ensure polling mechanisms remain robust and tamper-proof, this transition reflects SEBI’s broader goal of deepening trust in India’s capital and commodity markets through localized, data-driven frameworks.

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