Sebi proposes to standardize valuation methods of gold, silver ETFs

SEBI (Securities and Exchange Board of India) is reviewing the valuation methodology for physical gold and silver held by mutual funds through ETFs to align it with domestic market prices. Currently, gold ETFs use LBMA (London Bullion Market Association) prices. SEBI proposes that Asset Management Companies (AMCs) should instead use spot prices published by domestic commodity exchanges. This aims to simplify the valuation process, which currently involves complex conversions and adjustments. The change would bring uniformity across the mutual fund industry and better reflect local market conditions.