Description

Nippon India Mutual Fund limits fresh subscriptions to Rs. 1 lakh per PAN per day for Nippon India Silver ETF Fund of Fund due to domestic silver shortage and price premium.

Summary

Nippon India Mutual Fund has imposed subscription limits on Nippon India Silver ETF Fund of Fund effective October 15, 2025. Due to physical silver shortage in the domestic market causing silver to trade at a premium relative to international prices, fresh and additional subscriptions are restricted to Rs. 1,00,000 per PAN per day. This measure aims to protect investor interests amid inflated silver ETF prices on the exchange.

Key Points

  • Subscription limit of Rs. 1 lakh per PAN per day imposed on fresh/additional purchases, switch-ins, and new SIP/STP registrations
  • Restriction effective from October 15, 2025 until further notice
  • Existing SIPs, STPs, redemptions, and switch-out requests remain unaffected
  • Domestic silver shortage causing premium pricing relative to international markets
  • Premium in domestic silver prices directly impacts FOF valuation
  • Regulatory mandated investments (AMC designated employee alignment and mandatory AMC contributions) are exempt from restrictions

Regulatory Changes

No regulatory changes. This is an AMC-initiated operational measure under existing framework to protect investor interests during adverse market conditions.

Compliance Requirements

  • Exchange members must implement subscription limits on NSE MF Invest Platform
  • Restrictions apply to lumpsum purchases, switch-ins, additional purchases, and fresh systematic registrations under STP and SIP
  • Maximum limit: INR 1,00,000 per PAN per day
  • Exemptions must be provided for regulatory mandated investments

Important Dates

  • Effective Date: October 15, 2025
  • Duration: Until further notice

Impact Assessment

The subscription restriction limits investor access to Nippon India Silver ETF Fund of Fund during a period of market dislocation in domestic silver prices. While protecting existing unitholders from potential dilution at inflated valuations, it restricts new investors from entering the fund. The measure is temporary and addresses specific commodity market conditions where domestic silver trades at premium to international prices. Existing systematic plans and redemption requests continue normally, maintaining liquidity for current investors.

Impact Justification

Operational restriction affecting investor access to specific fund due to market conditions; protects existing investors but limits new subscriptions