Description

NSE temporarily suspends fresh subscriptions and switch-ins for Groww Silver ETF Fund of Fund due to premium in domestic silver prices caused by physical silver shortage in the market.

Summary

NSE has disabled fresh subscriptions through lumpsum and switch-in transactions for Groww Silver ETF Fund of Fund on the NSE MF Invest Platform with immediate effect. This action follows communication from Groww Mutual Fund regarding temporary suspension due to prevailing market conditions where silver is trading at a premium relative to international prices, primarily due to a shortage of physical silver in the domestic market. All purchase and switch-in transactions timestamped on or before 3:00 PM on October 13, 2025 will be processed at applicable NAV, while transactions received thereafter will not be accepted.

Key Points

  • Fresh subscriptions through lumpsum and switch-in transactions disabled for Groww Silver ETF Fund of Fund
  • Suspension effective immediately on NSE MF Invest Platform
  • Cause: Domestic silver trading at premium due to physical silver shortage in domestic market
  • Groww Silver ETF FOF is an open-ended Fund of Fund scheme investing in units of Groww Silver ETF
  • Premium in domestic silver prices directly influences the scheme’s valuation
  • Transactions timestamped on or before 3:00 PM on October 13, 2025 will be accepted and processed
  • Transactions received after this cutoff will not be accepted
  • No restrictions on redemptions, SWP, switch-out, and STP-out transactions
  • Existing and fresh SIP and STP transactions will remain operational
  • Suspension is temporary and will remain until further notice

Regulatory Changes

No permanent regulatory changes introduced. This is a temporary operational measure taken by Groww Mutual Fund in consultation with NSE to protect investor interests during unusual market conditions.

Compliance Requirements

  • NSE members must ensure that fresh subscription and switch-in orders for Groww Silver ETF Fund of Fund are not accepted on the NSE MF Invest Platform
  • Members should inform investors about the temporary suspension
  • Members must continue to process redemptions, SWP, switch-out, and STP-out transactions normally
  • Existing and new SIP/STP facilities must remain operational
  • Members should refer to the notice cum addendum issued by Groww Mutual Fund for complete details

Important Dates

  • October 13, 2025 (3:00 PM): Last cutoff time for purchase and switch-in transactions to be accepted
  • October 14, 2025: Circular issued to NSE members
  • Immediate Effect: Suspension becomes operational from October 14, 2025
  • Until Further Notice: Duration of temporary suspension (no specific end date provided)

Impact Assessment

Investor Impact: Investors seeking fresh exposure to silver through Groww Silver ETF Fund of Fund will be unable to make new lumpsum investments or switch-in from other schemes. However, existing investors can continue with systematic investment plans and retain full redemption flexibility.

Market Impact: Limited to specific scheme; reflects broader market condition of silver shortage in domestic market causing pricing distortions. The fund house’s decision to suspend subscriptions demonstrates prudent risk management to prevent investors from entering at potentially inflated valuations.

Operational Impact: No disruption to existing SIP, STP, SWP, redemption, or switch-out operations. Members need to update their systems to block only fresh lumpsum subscriptions and switch-in transactions for this specific scheme.

Asset Management: The suspension protects the fund from potential inflows at premium valuations and allows the investment manager to manage the scheme more effectively during market volatility in the silver segment.

Impact Justification

Affects specific mutual fund scheme subscriptions due to market conditions but allows redemptions and existing SIPs to continue, limiting overall market impact to investors in this particular silver fund.