Description

HDFC Mutual Fund restricts subscriptions in HDFC Silver ETF Fund of Fund to Rs. 1 lakh per PAN per day due to recent volatility in silver prices, effective after 3:00 PM on October 14, 2025.

Summary

HDFC Mutual Fund has implemented temporary restrictions on subscriptions in HDFC Silver ETF Fund of Fund effective after 3:00 PM on October 14, 2025. Due to recent volatility in silver prices, lumpsum purchases, switch-ins, and new systematic registrations (SIP, STP) are now limited to Rs. 1 lakh per PAN per day (at first holder level). Existing systematic registrations and all redemption/switch-out transactions remain unaffected.

Key Points

  • Subscription limit of Rs. 1,00,000 per PAN per day imposed on HDFC Silver ETF Fund of Fund
  • Restrictions apply to lumpsum purchases/switch-ins and new systematic registrations (SIP, STP-in)
  • Cut-off time for restrictions: 3:00 PM on October 14, 2025
  • Existing systematic registrations (SIP, STP) continue to be processed normally
  • All redemptions and switch-out transactions are not affected
  • Measure implemented to protect investor interests amid silver price volatility
  • Restrictions to remain until further notice

Regulatory Changes

No regulatory changes. This is a fund-level operational restriction implemented by HDFC Mutual Fund under their risk management framework to protect investor interests during periods of high market volatility.

Compliance Requirements

For NSE Members:

  • Implement the Rs. 1 lakh per PAN per day subscription limit on NSE MF Invest Platform
  • Ensure restrictions apply to: lumpsum purchases, switch-ins, additional purchases, fresh STP registrations, and fresh SIP registrations
  • Continue processing existing systematic registrations without restrictions
  • Continue processing all redemption and switch-out transactions normally

For Investors:

  • New subscriptions (lumpsum/switch-in) limited to Rs. 1 lakh per PAN per day
  • New SIP and STP registrations limited to Rs. 1 lakh per PAN per day
  • Existing SIP/STP investments unaffected

Important Dates

  • October 14, 2025 (3:00 PM): Cut-off time after which subscription restrictions become effective
  • October 15, 2025: Date of addendum and NSE circular
  • Until further notice: Duration of restrictions

Impact Assessment

Market Impact:

  • Limits new investor inflows into HDFC Silver ETF Fund of Fund during volatile silver price conditions
  • Protects fund from potential risks associated with large inflows during volatile periods
  • No impact on silver ETF market prices directly

Investor Impact:

  • New investors or existing investors seeking to increase exposure are restricted to Rs. 1 lakh per day
  • Existing SIP/STP investors can continue their investments without interruption
  • Redemption flexibility remains intact
  • Temporary measure to protect against adverse market movements

Operational Impact:

  • NSE MF Invest Platform must enforce subscription limits at PAN level
  • Fund house operational processes adjusted to monitor and enforce daily limits
  • No impact on existing systematic investment infrastructure

Impact Justification

Temporary restriction on mutual fund subscriptions to protect investors from silver price volatility. Medium impact as it affects new subscriptions only, not existing SIPs or redemptions.