New Rule For Gold And Silver ETFs: What Changes From April 1, 2026

The Securities and Exchange Board of India (SEBI) has changed the way the physical holdings of gold and silver exchange-traded funds (ETFs) are valued.

“Earlier, gold and silver ETFs and mutual funds used to value their holdings on international benchmarks like the London Bullion Market Association (LBMA). Several adjustments were made to account for currency conversion, taxes, import duties, and other costs,” says Anshi Shrivastava, Head, Personal Finance Training at 1 Finance.

From April 1, 2026, funds must value these holdings using spot prices from recognised Indian stock exchanges.

These changes will:

• Make the valuations reflect real Indian market conditions, such as local demand and supply, rupee movements, and import costs.

• Reduce differences in NAV calculations between various ETFs and fund houses.

“This change will simplify the valuation process, introduce greater uniformity across all funds, and align prices more closely with actual market prices in India,” says Shrivastava.

Impact On Returns, Taxation, And Liquidity

The new approach to valuation may cause NAV and returns to be temporarily out of sync. There is no impact on the tax treatment of capital gains.

Liquidity is also unaffected, though the improved consistency could gradually make buying and selling smoother.

What Current And Prospective Investors Should Keep In Mind

“Existing ETF holders do not need to do anything. New investors now find it easier to compare different ETFs using the same domestic price reference,” says Shrivastava.

All investors (new and existing) should check expense ratios, tracking accuracy, and liquidity before investing in or switching to any gold or silver ETF/mutual fund.

Do These Changes Affect The Attractiveness Of ETFs As An Investment Option?

Moving forward, these reforms should make gold and silver ETFs more attractive. “By reducing price discrepancies and improving transparency, such funds can better track underlying gold and silver prices. Investors can also continue to enjoy the convenience of investing without physical storage, making these ETFs a simpler and more reliable way to gain exposure to gold and silver,” says Shrivastava.