Description

Kotak Mahindra AMC temporarily suspends fresh/additional lumpsum and switch-in transactions in Kotak Silver ETF Fund of Fund effective October 10, 2025, due to premium in domestic silver prices.

Summary

Kotak Mahindra Asset Management Company Limited (KMAMC) has temporarily suspended all fresh/additional lumpsum and switch-in transactions in Kotak Silver ETF Fund of Fund effective October 10, 2025. The suspension is due to domestic silver trading at a premium relative to international prices caused by physical silver shortage in the domestic market. All purchase/switch-in transactions timestamped on or before 3:00 PM on October 09, 2025 will be processed. Existing Systematic Investment Plans (SIPs), Systematic Transfer Plans (STPs), and redemptions/switch-outs will continue to operate normally.

Key Points

  • Temporary suspension of fresh/additional lumpsum subscriptions and switch-ins effective October 10, 2025
  • Suspension applies only to Kotak Silver ETF Fund of Fund
  • Domestic silver trading at premium due to physical silver shortage in domestic market
  • Measure taken in the interest of investors
  • All existing/new SIPs and STPs remain operational
  • Redemptions and switch-outs continue to be permitted
  • Transactions timestamped on or before 3:00 PM October 09, 2025 will be accepted and processed
  • Suspension is temporary and will continue until further notice

Regulatory Changes

No regulatory changes. This is an operational decision by the Asset Management Company under existing regulatory framework to protect investor interests during abnormal market conditions.

Compliance Requirements

  • Distributors and intermediaries must inform investors about the temporary suspension
  • No fresh lumpsum or switch-in applications to be accepted from October 10, 2025
  • Existing SIP/STP mandates to continue processing
  • Redemption requests to be processed as per normal procedures
  • This notice-cum-addendum forms integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM)

Important Dates

  • October 09, 2025, 3:00 PM: Last timestamp for accepting purchase/switch-in transactions
  • October 10, 2025: Effective date of temporary suspension of fresh/additional subscriptions and switch-ins
  • Until Further Notice: Duration of suspension (temporary in nature)

Impact Assessment

Market Impact: Limited to investors specifically interested in Kotak Silver ETF Fund of Fund. Does not affect broader market operations or other mutual fund schemes.

Investor Impact: Moderate impact on investors seeking fresh exposure to silver through this fund. However, existing investors can continue SIPs and have full redemption flexibility. The suspension protects new investors from entering at elevated premium levels.

Operational Impact: Fund house operations adjusted to reject fresh lumpsum/switch-in transactions while maintaining normal processing for SIPs, STPs, and redemptions. The underlying Kotak Silver ETF continues to operate normally.

Rationale: The premium in domestic silver prices over international prices creates unfavorable entry conditions for new investors. Temporary suspension prevents investors from purchasing at inflated valuations, demonstrating investor protection measures by the AMC.

Impact Justification

Temporary suspension affects only one specific mutual fund scheme due to market conditions. SIPs and redemptions continue uninterrupted. Limited to investors in this particular fund.