Description

Suspension of fresh subscriptions, additional purchases, and switch-ins in Aditya Birla Sun Life Silver ETF FOF effective October 15, 2025 due to premium pricing of silver in domestic market.

Summary

Aditya Birla Sun Life AMC Limited has suspended fresh subscriptions, additional purchases, and switch-in applications for Aditya Birla Sun Life Silver ETF Fund of Fund effective October 15, 2025. This decision is due to prevailing market conditions where physical silver shortage in the domestic market has caused silver to trade at a premium relative to international prices, leading to inflated Silver ETF prices on exchanges. The suspension is implemented to protect investor interests. Redemptions and switch-outs will continue to be permitted during the suspension period.

Key Points

  • Fresh subscriptions and additional purchases suspended effective October 15, 2025
  • Switch-in applications will not be accepted from the effective date
  • Applications received after cutoff time on October 14, 2025 will not be processed
  • No new SIP (Systematic Investment Plan) or STP (Systematic Transfer Plan) registrations accepted
  • Existing SIP/STP registered before effective date will continue to be processed
  • No units will be allotted under SIP/STP falling on or after October 15, 2025
  • Redemptions and switch-outs will continue without restriction
  • Suspension due to domestic silver trading at premium to international prices
  • Physical silver shortage in domestic market causing inflated ETF prices

Regulatory Changes

This is an operational change rather than a regulatory change. The AMC has issued Addendum No. 43/2025 to update the Scheme Information Document (SID) and Key Information Memorandum (KIM) to reflect the suspension of fresh subscriptions. All other terms and conditions of the SID and KIM remain unchanged.

Compliance Requirements

  • Investment Manager: Must not accept fresh subscription applications received after cutoff on October 14, 2025
  • Distributors and Platforms: Must stop accepting new subscription, additional purchase, and switch-in applications for this scheme
  • AMC: Must continue processing existing SIP/STP registered before effective date
  • AMC: Must continue processing redemption and switch-out requests during suspension period
  • Investors: Cannot make fresh subscriptions, additional purchases, or switch-ins from October 15, 2025
  • Investors: Must cancel any new SIP/STP applications as they will not be accepted

Important Dates

  • October 14, 2025: Last date for fresh subscription applications (before cutoff time)
  • October 15, 2025: Effective date of subscription suspension
  • October 14, 2025: Notice date and place of issue (Mumbai)

Impact Assessment

Market Impact: This suspension affects investor access to silver exposure through this fund of fund route. The underlying issue of domestic silver premium pricing reflects broader commodity market dynamics and supply constraints.

Investor Impact: High impact for new investors seeking silver exposure through this fund of fund scheme. Existing investors with registered SIP/STP can continue their systematic investments. All investors retain full redemption rights, protecting liquidity.

Scheme Impact: The suspension is a protective measure to prevent investors from entering at artificially inflated prices. This demonstrates prudent fund management prioritizing investor protection over asset gathering. The scheme remains operational for existing unitholders with full redemption facilities.

Industry Impact: Indicates broader challenges in the silver ETF space related to physical metal availability and pricing disparities between domestic and international markets. Other silver-focused schemes may face similar considerations.

Impact Justification

Complete suspension of fresh subscriptions affects all potential investors in this fund of fund scheme. Existing SIP/STP registrations will continue but no new systematic plans accepted. Redemptions unaffected.