Investing in gold, silver ETFs? Your NAV calculation's changing from April

Starting April 1, 2026, the industry will move away from international benchmarks and anchor itself to the polled spot prices published by Indian stock exchanges

Capital markets regulator Sebi has revised the valuation methodology for physical gold and silver held by mutual fund schemes. Starting April 1, 2026, mutual funds will have to use domestic polled spot prices published by recognised stock exchanges to value their bullion holdings.

 

In simple terms: the way your gold or silver ETF’s daily NAV is calculated is changing

 

Under the new mandate, mutual funds must use the polled spot prices published by recognized stock exchanges. These are the same prices used to settle physically delivered bullion derivatives contracts on domestic exchanges like the MCX or NSE. 

What’s Changing?

 

Currently, gold and silver ETFs value their holdings using the London Bullion Market Association (LBMA) AM fixing price. This global benchmark is then adjusted for:

 

• Currency conversion (USD to INR)
• Customs duty
• Transportation costs
• Taxes and other levies

 

From April 2026 onward, ETFs will instead use:

 

• Polled domestic spot prices published by Indian stock exchanges
• The same prices used to settle physically delivered bullion derivatives contracts

   

Why the Change? Moving from London to Lok Kalyan Marg

Currently, the valuation of gold and silver ETFs follows a complex, multi-step calculation. They use the London Bullion Market Association (LBMA) AM fixing prices as a base, which then requires adjustments for:

 

Currency conversion (USD to INR)

 

Transportation and landing costs

 

Customs duties and import taxes

 

Local levies and GST

 

By mandating the use of domestic polled spot prices, Sebi is removing the "conversion lag" and ensuring that the Net Asset Value (NAV) of your gold or silver fund reflects what the metal is actually worth in the Indian physical market at that moment.

 

 

No Change to Your Units or Holdings

 

Importantly:

 

Your ETF units remain the same.

 

There is no change to taxation.

 

There is no change to how you buy or sell the ETF.

 

The change affects only how the underlying physical gold or silver is valued for NAV purposes. 

The Implementation Roadmap

The industry body Amfi (Association of Mutual Funds in India) has been tasked with consulting with Sebi to prescribe a uniform policy for this transition. This will ensure that all fund houses follow a standardized process when the rules kick in next April.

 

For the investor, this change is largely structural. Your gold and silver investments remain as secure as ever, but their daily price movements (NAV) will now be more "Indian" in nature—driven by the very exchanges where physical delivery of the metal actually happens.