Description

BSE revises reference price methodology for Gold and Silver ETFs to T-1 NAV with ±20% price bands due to volatility in underlying metal prices.

Summary

BSE has revised the reference price methodology for Gold and Silver ETFs traded on the exchange. Due to volatility in underlying gold and silver prices, the reference price will now be based on T-1 NAV (previous day’s Net Asset Value) as published by respective Mutual Funds/Asset Management Companies. The prescribed price band of ±20% will apply to this T-1 NAV price for trading purposes.

Key Points

  • Reference price for Gold and Silver ETFs changed to T-1 NAV
  • Change implemented due to volatility in underlying Gold and Silver prices
  • NAV values to be sourced from respective Mutual Funds/Asset Management Companies
  • Price band of ±20% applicable on T-1 NAV price
  • Applicable to all Gold and Silver ETFs traded on BSE

Regulatory Changes

The exchange has modified the reference price calculation methodology for Gold and Silver ETFs. Previously unstated methodology now explicitly requires using the previous trading day’s NAV as the reference price for determining price bands.

Compliance Requirements

  • Trading Members must take note of the revised reference price methodology
  • Trading systems should be configured to use T-1 NAV as reference price for Gold and Silver ETFs
  • Price bands of ±20% to be applied on T-1 NAV values

Important Dates

  • Notice Date: February 1, 2026
  • Effective Date: Immediate (as indicated by notice)

Impact Assessment

This change provides more stable reference pricing for Gold and Silver ETFs during periods of high volatility in underlying commodity prices. Trading members and investors should be aware that daily price movements will be calculated relative to the previous day’s NAV rather than other potential reference points. This may result in better price discovery and reduced instances of circuit breakers being triggered due to intraday volatility in gold and silver spot prices.

Impact Justification

Affects pricing methodology for Gold and Silver ETFs during high volatility periods, impacts trading members and investors in these ETFs