Description

Fresh subscriptions, additional purchases, and switch-ins discontinued in Aditya Birla Sun Life Silver ETF FOF from October 15, 2025 due to silver premium in domestic market.

Summary

Aditya Birla Sun Life AMC Limited has announced the temporary suspension of fresh subscriptions, additional purchases, and switch-in applications in the Aditya Birla Sun Life Silver ETF Fund of Fund effective October 15, 2025. This measure is implemented to protect investor interests 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, resulting in inflated Silver ETF prices on exchanges. Redemptions and switch-outs will continue to be permitted during the suspension period.

Key Points

  • Fresh subscriptions, additional purchases, and switch-in applications will be discontinued from October 15, 2025
  • Applications received after cutoff time on October 14, 2025 will not be processed
  • No fresh registrations for Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP) will be accepted
  • No units will be allotted under SIP and STP falling on or after the effective date
  • SIP/STP installments registered prior to the effective date will continue to be processed
  • Redemptions and switch-outs will remain permitted during the suspension period
  • The scheme is an open-ended fund of fund investing in units of Aditya Birla Sun Life Silver ETF
  • Decision made due to physical silver shortage causing domestic silver to trade at premium to international prices

Regulatory Changes

Addendum No. 43/2025 has been issued to modify the Scheme Information Document (SID) and Key Information Memorandum (KIM) of Aditya Birla Sun Life Silver ETF Fund of Fund. The addendum implements temporary restrictions on subscription activities while maintaining redemption facilities.

Compliance Requirements

  • Investors cannot submit fresh subscription or additional purchase applications after October 14, 2025 cutoff time
  • No new SIP or STP registrations will be accepted from the effective date
  • Fund manager must continue processing redemptions and switch-outs as per existing SID terms
  • Pre-registered SIP/STP installments falling due after effective date must be honored under respective Plan/Option
  • Scheme documentation (SID and KIM) must be updated to reflect these changes

Important Dates

  • October 14, 2025: Last date to submit fresh subscription/additional purchase/switch-in applications (before cutoff time)
  • October 15, 2025: Effective date for suspension of fresh subscriptions, additional purchases, and switch-ins
  • October 14, 2025: Notice date and place of issue (Mumbai)

Impact Assessment

Market Impact: The suspension reflects significant distortions in the domestic silver market, where physical silver shortage has created a premium over international prices. This affects the entire silver ETF ecosystem and indicates broader commodity market stress.

Investor Impact: Investors seeking fresh exposure to silver through this fund of fund will be unable to invest. However, existing investors can continue to exit their positions through redemptions. Pre-existing SIP/STP commitments will be honored, providing some continuity for systematic investors.

Operational Impact: The fund manager is taking proactive steps to protect investor interests by preventing new investments at inflated prices. This demonstrates prudent risk management but limits product availability. The measure is temporary and linked to prevailing market conditions, suggesting it may be reversed when domestic silver pricing normalizes relative to international markets.

Impact Justification

Complete suspension of fresh investments in a mutual fund scheme affects investor access and indicates significant market distortions in silver pricing. Existing SIP/STP commitments will continue but no new registrations accepted.