Description

Groww Mutual Fund temporarily suspends subscriptions in Groww Silver ETF FOF due to premium in domestic silver prices caused by physical silver shortage in the domestic market.

Summary

Groww Asset Management Ltd. has temporarily suspended subscriptions and switch-in transactions for Groww Silver ETF FOF effective October 13, 2025 at 3:00 p.m. The suspension is due to domestic silver trading at a premium relative to international prices caused by a shortage of physical silver in the domestic market. Redemptions and switch-outs continue to be permitted during the suspension period.

Key Points

  • Temporary suspension of all purchase and switch-in transactions in Groww Silver ETF FOF
  • Last accepted transactions: those time-stamped on or before 3:00 p.m. on October 13, 2025
  • Cause: Premium in domestic silver prices due to physical silver shortage in domestic market
  • Groww Silver ETF FOF is an open-ended Fund of Fund scheme investing in units of Groww Silver ETF
  • Existing and new scheme facilities like SIP, SWP, STP remain unaffected
  • Redemptions and switch-outs continue to be permitted as per SID terms
  • Suspension is temporary and will remain until further notice

Regulatory Changes

No regulatory changes introduced. This is an operational measure taken by the fund house in response to market conditions.

Compliance Requirements

  • Investment Manager: Groww Asset Management Ltd. (CIN: U65991KA2008PLC180894)
  • Notice cum addendum forms integral part of the SID and KIM of the scheme
  • All other terms and conditions in SID and KIM remain unchanged
  • Investors encouraged to register/update email and mobile number for paperless communications under Go Green Initiative

Important Dates

  • October 13, 2025, 3:00 p.m.: Cutoff time for acceptance of purchase and switch-in transactions
  • October 13, 2025: Notice date
  • Until further notice: Duration of suspension

Impact Assessment

Market Impact: Limited to investors in Groww Silver ETF FOF scheme. The suspension prevents new investors from entering the scheme and existing investors from adding to positions during the period when domestic silver prices are at a premium.

Operational Impact: Existing systematic investment facilities (SIP, SWP, STP) remain operational. Investors retain full redemption rights, ensuring liquidity is not compromised. The measure protects investors from entering at potentially disadvantageous valuations due to the domestic silver premium.

Investor Impact: New subscriptions blocked but existing investments can be redeemed. The temporary nature suggests the fund house expects market conditions to normalize, allowing resumption of subscriptions when domestic-international silver price differential narrows.

Impact Justification

Affects only investors in Groww Silver ETF FOF scheme. Temporary suspension due to market conditions with redemptions still permitted. No system-wide impact.