1 year ago
SEBI Proposes Changes to Gold, Silver Valuation
The market regulator, SEBI, wants to change how gold and silver in investment funds are valued.
Right now, they use prices set by the London market, which can be tricky.
SEBI's new idea is to use prices from Indian exchanges, which are closer to what people pay here.
This should make things clearer.
These exchanges get prices from traders.
To make sure prices are fair, SEBI wants more traders involved and to keep a close eye on the process.
This should make it easier to see how much the gold and silver are really worth.
SEBI proposes to use Indian commodity exchange prices for valuing gold and silver in ETFs.
Current rules rely on LBMA prices, converted to rupees with added taxes and purity adjustments.
This new proposal aims to increase transparency and link valuations closer to domestic prices.
Commodity exchanges use twice-daily price polling among market stakeholders.
SEBI needs to improve the price polling mechanism to ensure more participants.
- Who
- The Securities and Exchange Board of India (SEBI)
- What
- SEBI is proposing to use Indian commodity exchange prices to value gold and silver in ETFs.
- Where
- India
- When
- Published on July 23, 2025
- Why
- To increase transparency and link valuations more closely with domestic prices.
Concerns with Current System
Proposed Solutions
Lack of Uniformity and Transparency
Concerns with Current System
The existing valuation methods lack transparency due to the use of LBMA prices and discretion applied by asset management companies.
Proposed Solutions
N/A
Key facts
- Regulator
- SEBI
- Proposal
- Use Indian commodity exchange prices
- Current valuation method
- LBMA prices
- Price Polling
- Twice daily
- Publication Date
- July 23, 2025
