Description

ICICI Prudential AMC temporarily suspends fresh subscriptions and new SIP/STP registrations in Silver ETF Fund of Fund effective October 14, 2025, due to inflated domestic silver prices and supply constraints.

Summary

ICICI Prudential Trust Limited has approved the temporary discontinuation of all fresh subscriptions in ICICI Prudential Silver ETF Fund of Fund effective October 14, 2025. This includes lumpsum investments, switches-in, and new SIP/STP registrations. The suspension is due to significantly inflated domestic silver prices above global benchmarks caused by local supply shortages in the physical bullion market. Existing systematic transactions registered before October 14, 2025 will continue to be processed, and redemptions remain permitted.

Key Points

  • Temporary suspension of fresh subscriptions through lumpsum mode and switches into Silver ETF FOF effective October 14, 2025
  • New SIP and STP registrations targeting this scheme are suspended
  • Existing SIPs/STPs registered prior to October 14, 2025 will continue to be processed
  • Redemptions and switch-outs continue to be allowed as per normal scheme terms
  • Purchase/switch-in transactions timestamped on or before 3:00 PM on October 13, 2025 will be accepted and processed
  • Suspension implemented to protect investor interests due to inflated domestic silver prices
  • Silver prices in India have risen significantly above global benchmarks due to local supply constraints
  • Physical silver supply shortage in bullion market expected to continue in near future
  • Silver ETF FOF invests primarily in ICICI Prudential Silver ETF units
  • ETF closing prices on exchanges are used for FOF valuation

Regulatory Changes

No regulatory changes. This is an operational decision by the AMC and Trustee to temporarily suspend subscriptions in accordance with their powers to protect investor interests during abnormal market conditions.

Compliance Requirements

  • AMC to provide notice-cum-addendum to existing investors
  • All other provisions of Scheme Information Document (SID) and Key Information Memorandum (KIM) remain unchanged except for subscription suspension
  • Investors should periodically review and update KYC details including mobile number and email ID
  • AMC will issue further notice when subscriptions resume

Important Dates

  • October 13, 2025, 3:00 PM: Last timestamp for acceptance of purchase/switch-in transactions
  • October 14, 2025: Effective date of subscription suspension
  • October 13, 2025: Date of trustee approval and circular issuance
  • Until Further Notice: Duration of temporary suspension

Impact Assessment

Market Impact: The suspension highlights significant dislocation in India’s domestic silver markets, with prices substantially elevated above global benchmarks due to physical supply constraints. This creates tracking error concerns for silver ETFs trading at premiums.

Investor Impact: High impact on investors seeking fresh exposure to silver through this FOF route. New investors cannot enter the scheme, and existing investors cannot increase positions via lumpsum or new systematic plans. However, existing SIPs continue and redemption liquidity is maintained.

Operational Impact: The AMC is taking proactive protective measures to prevent new investors from entering at inflated valuations. The domestic silver supply shortage is expected to persist in the near term, potentially extending the suspension period. This affects the scheme’s asset gathering capabilities but protects current and prospective unitholders from adverse pricing.

Impact Justification

Complete suspension of fresh investments in a commodity ETF FOF affects investor access and indicates significant market dislocation in domestic silver markets with inflated prices above global benchmarks