Description

BSE announces temporary restriction on subscriptions in HDFC Silver ETF Fund of Fund to Rs. 1 lakh per PAN per day due to silver price volatility, effective October 14, 2025.

Summary

HDFC Mutual Fund has temporarily restricted subscriptions in HDFC Silver ETF Fund of Fund effective after 3:00 PM on October 14, 2025, limiting new investments to Rs. 1 lakh per PAN per day at first holder level. This measure is implemented to protect investor interests amid recent volatility in silver prices. Existing systematic investment registrations and all redemption transactions remain unaffected.

Key Points

  • Subscription limit of Rs. 1 lakh per PAN per day imposed on HDFC Silver ETF Fund of Fund
  • Restriction effective after cut-off time (3:00 PM) on October 14, 2025
  • Applies to lumpsum purchases and switch-ins
  • New systematic registrations (SIP, STP-in) also subject to the limit
  • Existing SIP, STP registrations continue without restriction
  • All redemptions and switch-outs unaffected
  • Measure implemented due to recent silver price volatility

Regulatory Changes

This addendum modifies the Scheme Information Document (SID) and Key Information Memorandum (KIM) of HDFC Silver ETF Fund of Fund by introducing temporary subscription restrictions. The restriction is imposed under the fund management company’s authority to protect investor interests during periods of market volatility.

Compliance Requirements

  • Investors must adhere to the Rs. 1 lakh per PAN per day limit for new subscriptions
  • Limit applies at first holder level for all covered transaction types
  • Fund administrators must enforce the subscription cap on lumpsum purchases, switch-ins, and new systematic plan registrations
  • Existing systematic investment instructions to be processed without modification
  • The addendum forms an integral part of the scheme documents

Important Dates

  • October 14, 2025 (after 3:00 PM): Subscription restrictions come into effect
  • October 15, 2025: Date of addendum publication
  • Until further notice: Duration of temporary restrictions

Impact Assessment

Investor Impact: Investors seeking to make large investments in HDFC Silver ETF Fund of Fund will face daily limits, potentially requiring them to spread investments over multiple days or seek alternative silver investment vehicles. However, existing investors with systematic plans remain unaffected.

Market Impact: The restriction reflects heightened volatility in silver markets and represents a protective measure by the fund house. This may indicate broader concerns about rapid inflows during volatile periods and potential liquidity management challenges in the underlying silver ETF.

Operational Impact: Fund distributors and platforms must implement controls to enforce the per-PAN daily limit. The restriction applies only to new money flowing into the scheme, preserving investor flexibility for exits and existing commitments.

Impact Justification

Temporary restriction affecting new investments in HDFC Silver ETF FOF due to market volatility; existing SIPs and redemptions unaffected; limited to specific investor segment