Description

ICICI Prudential temporarily suspends new subscriptions in Silver ETF Fund of Fund due to inflated domestic silver prices above global benchmarks caused by local supply constraints.

Summary

ICICI Prudential Asset Management Company has temporarily discontinued subscriptions in ICICI Prudential Silver ETF Fund of Fund effective October 14, 2025. The suspension applies to lump sum investments (including switches) and new SIP/STP registrations. The action is taken to protect investor interests as domestic silver prices have risen significantly above global benchmarks due to local supply shortages, leading to inflated prices of silver ETFs on exchanges. Redemptions and switch-outs will continue normally, and existing systematic transactions registered before October 14, 2025 will be processed.

Key Points

  • Temporary suspension of all new subscriptions (lump sum and switches) in ICICI Prudential Silver ETF Fund of Fund from October 14, 2025
  • Fresh registration of SIP and STP (as target scheme) also suspended
  • Existing SIP/STP transactions registered prior to October 14, 2025 will continue to be processed
  • Redemptions and switch-outs remain operational as per normal terms
  • Purchase/switch-in transactions timestamped on or before 3:00 PM October 13, 2025 will be accepted and processed
  • Suspension caused by domestic silver prices trading significantly above global benchmarks
  • Local physical silver supply constraints expected to continue in near future
  • Inflated ETF prices on exchanges due to supply shortage in bullion market

Regulatory Changes

No regulatory changes. This is a temporary operational measure by the fund house to protect investor interests during market disruption.

Compliance Requirements

  • Investors cannot make new lump sum investments or switches into the scheme during suspension period
  • No new SIP/STP registrations targeting this scheme will be accepted
  • All transactions timestamped after 3:00 PM on October 13, 2025 for purchase/switch-in will not be processed
  • AMC must continue processing existing systematic transactions registered before October 14, 2025
  • Notice-cum-Addendum forms integral part of Scheme Information Document and Key Information Memorandum

Important Dates

  • October 13, 2025, 3:00 PM: Cut-off time for accepting purchase/switch-in transactions before suspension
  • October 14, 2025: Effective date of subscription suspension
  • Until Further Notice: Duration of temporary suspension

Impact Assessment

Investor Impact: High - Investors cannot make new investments in this fund of fund scheme during the suspension period. Those planning to invest in silver through this route must seek alternative investment options. Existing investors can continue to redeem their holdings.

Market Impact: Medium - Reflects broader disruption in domestic silver market with prices significantly above global benchmarks. Indicates serious supply constraints in physical silver bullion market expected to persist.

Operational Impact: The suspension protects existing investors from entering at inflated prices but limits access to silver exposure through this specific fund of fund vehicle. The underlying Silver ETF’s ability to make fresh investments may be impacted by the supply shortage, which could affect the fund of fund’s investment objective.

Impact Justification

Complete suspension of new investments in a mutual fund scheme affects all potential investors and reflects significant market disruption in domestic silver prices due to supply constraints