1 year ago
SEBI Proposes Increased Transparency in Gold, Silver ETF Valuation
Imagine you have gold or silver in a special fund, like a savings account.
Right now, the price of that gold is decided by a group in London, which isn't always clear how they do it.
The people in charge want to make it easier to know the real price.
They want to use the prices from exchanges in India, which are like markets where people buy and sell gold and silver.
This will help make sure everyone sees the same price and make sure the price is closer to what it's actually worth in India.
They're also making sure the exchanges are fair and have lots of different people involved so the prices are correct.
SEBI proposes using prices from Indian commodity exchanges to value gold and silver in ETFs.
Current rules use LBMA prices, leading to valuation discrepancies among asset management companies.
SEBI aims for greater transparency by linking valuations to domestic prices.
Concerns exist about the price polling mechanism at Indian commodity exchanges.
SEBI needs to address the low number and lack of diversity of participants in price polling.
- Who
- The Securities and Exchange Board of India (SEBI)
- What
- SEBI proposed using gold and silver prices from Indian commodity exchanges to value Exchange Traded Funds.
- Where
- India
- When
- Published on July 23, 2025.
- Why
- To increase transparency and link valuations of gold and silver ETFs to domestic prices.
Concerns
Proposed Solution
Price Polling
Concerns
Observers are concerned about the low number of participants and lack of diversity in the price polling mechanism at commodity exchanges.
Proposed Solution
SEBI needs to streamline the price polling mechanism at these exchanges.
Key facts
- Regulatory Body
- SEBI
- Current Valuation Method
- LBMA prices, converted to rupees
- Proposed Valuation Method
- Prices from Indian commodity exchanges
- Concerns
- Price polling mechanism at exchanges
- Participants in MCX gold price polling
- Less than 20 on most days
