Description
NSE announces temporary suspension of fresh subscriptions through lumpsum and switch-in transactions for Kotak Silver ETF Fund of Fund with immediate effect due to premium in domestic silver prices.
Summary
National Stock Exchange of India has announced the temporary suspension of fresh subscriptions for Kotak Silver ETF Fund of Fund on the NSE MF Invest Platform, effective October 10, 2025. The suspension applies to fresh and additional lumpsum transactions and switch-in transactions. This decision was made by Kotak Mahindra Asset Management Company Limited due to current market conditions where domestic silver is trading at a premium relative to international prices, caused by a shortage of physical silver in the domestic market.
Key Points
- Temporary suspension of fresh/additional lumpsum and switch-in transactions for Kotak Silver ETF Fund of Fund effective October 10, 2025
- Suspension is due to premium in domestic silver prices relative to international prices caused by physical silver shortage
- All purchase or switch-in transactions timestamped on or before 3:00 PM of October 09, 2025 will be accepted and processed at applicable NAV
- Existing and new Systematic Investment Plans (SIP), Systematic Transfer Plans (STP) will remain operational
- Redemptions and switch-outs will continue to be permitted during the suspension period
- Kotak Silver ETF Fund of Fund is an open-ended Fund of Funds scheme investing in units of Kotak Silver ETF
- Kotak Silver ETF is an open-ended Exchange Traded Fund replicating/tracking the price of silver
Regulatory Changes
No regulatory changes. This is an operational measure taken by Kotak Mahindra Asset Management Company Limited in response to market conditions, communicated to NSE members through this circular.
Compliance Requirements
- NSE members must disable the Kotak Silver ETF Fund of Fund scheme for fresh subscriptions through lumpsum and switch-in transactions on the NSE MF Invest Platform with immediate effect
- Members must continue to allow existing SIP/STP transactions to process normally
- Members must continue to permit redemptions and switch-out transactions in accordance with the Scheme Information Document terms
- All other terms and conditions of the Scheme Information Document (SID) and Key Information Memorandum (KIM) remain unchanged
Important Dates
- October 09, 2025: Last date for accepting purchase/switch-in transactions (timestamped on or before 3:00 PM)
- October 10, 2025: Effective date of temporary suspension of fresh subscriptions
- Until further notice: Duration of the suspension (temporary in nature)
Impact Assessment
Market Impact: Limited impact as this affects only one specific mutual fund scheme focused on silver investments. The domestic silver market is experiencing unusual conditions with a premium over international prices due to physical shortage.
Investor Impact: New investors and those looking to make fresh lumpsum investments or switch-ins to Kotak Silver ETF Fund of Fund will be unable to do so during the suspension period. However, existing investors can continue their SIPs/STPs and have full redemption rights. This measure protects investors from entering at potentially unfavorable valuations.
Operational Impact: Minimal operational impact as the suspension is limited to one scheme on the NSE MF Invest Platform. Other mutual fund schemes and operations continue normally. The temporary nature suggests normal operations will resume once domestic silver market conditions stabilize.
Impact Justification
Affects only one specific mutual fund scheme (Kotak Silver ETF Fund of Fund) and is temporary in nature. Existing SIPs and redemptions continue normally. Impact limited to new investors in this particular silver-focused scheme.