Description

TATA Mutual Fund temporarily suspends fresh subscriptions, SIPs, and STPs in Tata Silver ETF Fund of Fund from October 15, 2025 due to shortage of physical silver in domestic market causing premium pricing.

Summary

National Stock Exchange of India has announced that TATA Mutual Fund is temporarily suspending fresh subscriptions in Tata Silver ETF Fund of Fund effective October 15, 2025. The suspension applies to lumpsum investments, switch-ins, and fresh registration of Systematic Investment Plans (SIP) and Systematic Transfer Plans (STP). The decision is driven by prevailing market conditions where physical silver shortage in the domestic market has caused silver to trade at a premium relative to international prices, directly impacting the scheme’s valuation.

Key Points

  • Fresh subscriptions, SIPs, and STPs in Tata Silver ETF Fund of Fund suspended from October 15, 2025
  • Existing SIP and STP registrations will remain operational
  • Redemptions, Systematic Withdrawal Plans (SWP), and switch-outs continue without restrictions
  • Purchase and switch-in transactions time-stamped on or before 3:00 PM on October 13, 2025 will be processed at applicable NAV
  • Suspension caused by shortage of physical silver in domestic market leading to premium pricing
  • Tata Silver ETF Fund of Fund is an open-ended fund investing in Tata Silver Exchange Traded Fund, which tracks domestic silver prices
  • Suspension is temporary and will continue until further notice

Regulatory Changes

No regulatory framework changes. This is an operational measure by TATA Mutual Fund implemented through the NSE MF Invest Platform in response to market conditions.

Compliance Requirements

  • NSE members must disable the mentioned scheme for fresh subscriptions, SIPs, STPs, and lumpsum investments on the NSE MF Invest Platform from October 15, 2025
  • Members must ensure existing SIP/STP registrations continue to function
  • Members must continue processing redemptions, SWPs, and switch-out transactions without restrictions
  • The addendum forms an integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM)

Important Dates

  • October 13, 2025: Addendum date; last date for transactions time-stamped by 3:00 PM to be accepted and processed
  • October 14, 2025: Circular issue date; effective date of notification
  • October 15, 2025: Suspension of fresh subscriptions, SIPs, and STPs becomes effective
  • Until further notice: Duration of temporary suspension

Impact Assessment

Market Impact: The suspension reflects broader challenges in the domestic silver market where physical supply constraints are causing price premiums versus international markets. This could signal similar actions by other silver-focused investment products if market conditions persist.

Investor Impact: Existing investors in Tata Silver ETF Fund of Fund can continue their existing SIPs/STPs and have full flexibility to redeem or switch out. New investors and those looking to increase exposure through fresh investments are blocked temporarily. Investors seeking silver exposure will need to explore alternative investment vehicles.

Operational Impact: Limited operational disruption as the measure is specific to one scheme. NSE members need to update their platform settings to reflect the suspension while maintaining normal operations for existing transactions and redemptions.

Impact Justification

Affects investors in Tata Silver ETF Fund of Fund but allows existing SIPs/STPs and all redemptions to continue. Temporary measure due to market conditions with limited broader market impact.