Description

NSE suspends fresh subscriptions, SIPs, and STPs in Aditya Birla Sun Life Silver ETF Fund of Fund from October 15, 2025 due to domestic silver market premium over international prices.

Summary

NSE has disabled fresh subscriptions, SIPs, STPs, and lumpsum investments in Aditya Birla Sun Life Silver ETF Fund of Fund effective October 15, 2025. The suspension is 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, leading to inflated Silver ETF prices on exchanges. This measure is taken to protect investor interests. Redemptions, Systematic Withdrawal Plans (SWP), and switch-outs will remain operational.

Key Points

  • Fresh subscriptions/additional purchases disabled from October 15, 2025
  • Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP) suspended for new registrations
  • Applications received after cutoff time on October 14, 2025 will not be processed
  • Existing SIP/STP installments registered before effective date will continue to be processed
  • Redemptions, SWPs, and switch-outs remain fully operational
  • Cause: Domestic silver shortage leading to premium pricing over international rates
  • Objective: Investor protection due to inflated Silver ETF trading prices

Regulatory Changes

No regulatory framework changes. This is an operational suspension measure implemented by the Asset Management Company (Aditya Birla Sun Life AMC Limited) in coordination with NSE for the specific scheme.

Compliance Requirements

  • NSE members must ensure fresh subscription requests for Aditya Birla Sun Life Silver ETF Fund of Fund are not processed from October 15, 2025
  • Members must communicate the suspension to investors attempting fresh subscriptions, SIPs, or STPs
  • Existing SIP/STP mandates registered prior to effective date must continue to be honored
  • Redemption and switch-out requests must be processed normally without restrictions

Important Dates

  • October 14, 2025: Last date for accepting fresh subscriptions (until cutoff time)
  • October 15, 2025: Effective date of suspension for fresh subscriptions, SIPs, and STPs
  • October 15, 2025 onwards: No new SIP/STP installments will be allotted; existing SIP/STP registered before this date will continue

Impact Assessment

Market Impact: Limited to investors of Aditya Birla Sun Life Silver ETF Fund of Fund. The suspension affects only new inflows, protecting potential investors from entering at inflated valuations.

Operational Impact: Existing investors can continue redemptions and switches without restrictions. Pre-registered systematic transactions will continue, maintaining predictability for existing investors.

Investor Protection: The suspension is a protective measure preventing new investors from buying at premium prices due to domestic silver market distortions. This demonstrates proactive risk management by the AMC and exchange.

Duration: The circular does not specify when the suspension will be lifted, indicating it will remain in effect until domestic silver market conditions normalize and the premium over international prices reduces.

Impact Justification

Impacts specific mutual fund scheme investors; redemptions continue unaffected. Suspension is temporary and protective in nature due to market conditions.