Description

NSE updates reference price methodology for Gold & Silver ETFs to use T-1 NAV due to volatility in underlying prices, with 20% lower price band applicable for trading.

Summary

NSE has changed the reference price methodology for Gold & Silver Exchange Traded Funds (ETFs) in response to volatility in underlying Gold and Silver prices. The reference price will now be based on T-1 NAV (previous day’s Net Asset Value) as published by respective Mutual Funds/Asset Management Companies, with the prescribed 20% lower price band applicable to this T-1 NAV price. This change is effective immediately from the trading session of February 01, 2026.

Key Points

  • Reference price for Gold & Silver ETFs now based on T-1 NAV published by respective Mutual Funds/AMCs
  • Change implemented due to volatility in underlying Gold & Silver prices
  • 20% lower price band applies to the T-1 NAV price for trading purposes
  • Methodology change effective immediately for the trading session of February 01, 2026
  • Supersedes previous guidance from NSE circular NSE/SURV/19758 dated January 5, 2012

Regulatory Changes

The Exchange has modified the reference price determination methodology for Gold & Silver ETFs. Previously governed by NSE circular NSE/SURV/19758 dated January 5, 2012, the new approach uses T-1 NAV as the basis for reference pricing instead of other potential methodologies. The 20% lower price band mechanism remains in place but is now applied to the T-1 NAV price.

Compliance Requirements

  • Trading Members must note the revised reference price methodology for Gold & Silver ETFs
  • Trading systems should reflect T-1 NAV-based reference prices for these ETFs
  • 20% lower price band to be calculated based on T-1 NAV published by respective Mutual Funds/AMCs
  • Members to direct queries to surveillance@nse.co.in

Important Dates

  • Effective Date: February 01, 2026 (same day as circular issuance)
  • Applicability: Trading session of February 01, 2026 onwards

Impact Assessment

This change has immediate and significant impact on Gold & Silver ETF trading:

Market Impact: The shift to T-1 NAV-based reference pricing provides greater stability during periods of high volatility in underlying precious metal prices. The 20% lower price band continues to provide downside protection while allowing adequate price discovery.

Operational Impact: Trading members and market participants must adjust to same-day implementation of the new methodology. Price band calculations and trading systems need to reference T-1 NAV from respective AMCs.

Investor Impact: Traders and investors in Gold & Silver ETFs will see price bands calculated differently, potentially affecting intraday trading ranges and execution strategies during volatile market conditions.

Impact Justification

Immediate change in pricing methodology for Gold & Silver ETFs effective same day, directly impacting trading parameters and price bands due to underlying volatility