Description

ICICI Prudential AMC temporarily discontinues subscriptions in Silver ETF FOF due to inflated domestic silver prices above global benchmarks caused by local supply shortages.

Summary

ICICI Prudential Asset Management Company has temporarily suspended all fresh subscriptions in ICICI Prudential Silver ETF Fund of Fund effective October 14, 2025. The suspension includes lumpsum investments, switches, and new SIP/STP registrations. This 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 silver ETF prices on exchanges. Redemptions and existing systematic transactions registered before October 14, 2025 will continue to be processed.

Key Points

  • Temporary discontinuation of all subscriptions (lumpsum, switches, fresh SIP/STP) in ICICI Prudential Silver ETF FOF from October 14, 2025
  • Suspension caused by significant premium of Indian silver prices over global benchmarks due to local supply constraints
  • Physical silver shortage in bullion market expected to continue in near future
  • Existing SIPs/STPs registered prior to October 14, 2025 will continue to be processed
  • Redemptions and switch-outs remain permitted during suspension period
  • All purchase/switch-in transactions timestamped on or before 3:00 PM October 13, 2025 will be processed at applicable NAV
  • Suspension duration: until further notice from AMC

Regulatory Changes

No regulatory changes. This is an operational decision by ICICI Prudential Trust Limited approved under existing scheme management framework to protect investor interests.

Compliance Requirements

  • AMC to continue processing existing systematic transactions registered before October 14, 2025
  • All redemptions to be processed in accordance with Scheme Information Document terms
  • AMC to issue further notice when subscription services resume
  • This notice-cum-addendum forms integral part of SID and KIM of the scheme

Important Dates

  • October 13, 2025: Last date for new subscriptions - transactions timestamped on or before 3:00 PM will be accepted
  • October 14, 2025: Effective date of subscription suspension
  • Until further notice: Duration of temporary suspension

Impact Assessment

Market Impact: The suspension reflects severe dislocation in domestic silver markets with Indian prices trading at significant premium to global benchmarks. This indicates structural supply constraints in the physical bullion market that may persist.

Investor Impact: High impact on investors seeking silver exposure through this FOF route. New investors cannot enter the scheme, and existing investors cannot increase positions through lumpsum or new systematic plans. However, investor protection is prioritized by preventing entry at inflated valuations.

Product Impact: The Silver ETF FOF’s ability to achieve its investment objective is compromised as the underlying Silver ETF trades at premiums disconnected from intrinsic value due to supply-driven price distortions. Continued fresh investments could result in value destruction for investors entering at elevated levels.

Impact Justification

Complete suspension of new investments in a commodity-linked fund product affects investor access and signals significant market dislocation in domestic silver prices