Description

Face value and paid-up value of Groww Gold ETF and Groww Silver ETF will be split from Rs. 10 to Re. 1 effective February 06, 2026.

Summary

NSE has announced a face value split for two ETFs managed by Groww Asset Management Limited. The face value and paid-up value of Groww Gold ETF (GROWWGOLD) and Groww Silver ETF (GROWWSLVR) will be reduced from Rs. 10 to Re. 1, effective February 06, 2026. This corporate action will make the ETF units more affordable for retail investors without changing the proportional ownership of existing unitholders.

Key Points

  • Face value split announced for two Groww Mutual Fund ETFs
  • Groww Gold ETF (Symbol: GROWWGOLD) face value reduced from Rs. 10 to Re. 1
  • Groww Silver ETF (Symbol: GROWWSLVR) face value reduced from Rs. 10 to Re. 1
  • Both face value and paid-up value will change
  • Split ratio is 10:1 (each unit of Rs. 10 will become 10 units of Re. 1)
  • Effective date: February 06, 2026

Regulatory Changes

No new regulatory framework introduced. This is a standard corporate action (face value split) permitted under existing regulations for exchange-traded funds.

Compliance Requirements

  • Members and market participants must update their systems to reflect the new face value from February 06, 2026
  • Trading platforms should adjust unit pricing and quantity calculations accordingly
  • Investors’ demat accounts will be credited with additional units proportional to their existing holdings
  • All reporting and reconciliation systems must account for the split ratio of 10:1

Important Dates

  • Circular Issue Date: January 30, 2026
  • Effective Date: February 06, 2026 (face value split becomes effective)

Impact Assessment

Market Impact: The face value split will reduce the per-unit price of both ETFs by a factor of 10, making them more accessible to retail investors who prefer lower-priced units. This may improve liquidity and trading volumes. Existing unitholders will see their unit quantity increase 10-fold while the total investment value remains unchanged.

Operational Impact: Brokers, custodians, and trading systems need to update their records and calculations to reflect the new face value. The split affects unit pricing, NAV calculations, and portfolio accounting but does not impact the underlying asset holdings of the ETFs (gold and silver positions remain unchanged).

Investor Impact: Moderate positive impact as lower unit prices typically attract more retail participation. No change in investor wealth or proportional ownership. Investors holding these ETFs will automatically receive additional units in their demat accounts.

Impact Justification

Face value split affects unit pricing and accessibility but does not change investor holdings proportionally. Moderate impact on ETF trading and investor perception.