SEBI’s Spot Price Mandate Sets Stage for ETF Transparency Revolution

India’s capital markets regulator SEBI has released a consultation paper proposing that Asset Management Companies directly use spot prices from domestic commodity exchanges to value physical gold and silver held by ETFs. The move aims to enhance transparency and consistency in NAV calculations.

 

Key Highlights:

 

- Spot prices from MCX and NCDEX may become the standard for ETF valuation

- The proposal is part of SEBI’s broader review of valuation norms for physical bullion assets

- AMCs are expected to align with fair valuation principles under the Mutual Funds Regulations

 

Capital Market Action:

- State Bank of India has approved the opening of its Qualified Institutional Placement

- The floor price for the QIP has been set at Rs 811.05 per share

- SBI aims to raise up to Rs 25,000 crore to strengthen its CET-1 capital ratio

 

Sources: SEBI, Economic Times, Financial Express, CNBC-TV18, Moneycontrol.