Description
NSE updates reference price methodology for Gold and Silver ETFs to use T-1 closing price due to volatility in underlying precious metal prices, effective February 02, 2026.
Summary
NSE has modified the reference price methodology for Gold and Silver ETFs traded on the exchange due to volatility in underlying precious metal prices. For trading on February 02, 2026, the reference price will be based on the closing price of February 01, 2026, with the prescribed price band of +/- 20% applicable to this closing price. This is a change from the standard methodology and is applicable only for the February 02, 2026 trading session.
Key Points
- Reference price for Gold and Silver ETFs will be based on T-1 closing price (February 01, 2026) for T day trading (February 02, 2026)
- Price band of +/- 20% will apply to the February 01, 2026 closing price
- Change implemented due to volatility in underlying Gold and Silver prices
- Methodology change is temporary and applicable only for February 02, 2026 trading session
- References previous circulars NSE/SURV/19758 dated January 05, 2012 and NSE/SURV/72554 dated February 01, 2026
Regulatory Changes
Temporary modification to reference price calculation methodology for Gold and Silver ETFs. Standard methodology replaced with T-1 closing price based approach for determining price bands.
Compliance Requirements
- Trading members must note the revised reference price methodology
- Price bands to be calculated based on February 01, 2026 closing prices for February 02, 2026 trading
- Members should contact surveillance@nse.co.in for any queries
Important Dates
- February 01, 2026: Closing prices to be used as reference price (T-1 day)
- February 02, 2026: Trading session with modified price band methodology (T day)
Impact Assessment
The circular affects trading in Gold and Silver ETFs on NSE. The temporary methodology change aims to provide appropriate price discovery mechanism during periods of high volatility in precious metal markets. Trading members and investors in Gold and Silver ETFs should be aware of the modified price band calculation for the specified trading session. The change is limited in scope and duration, affecting only one trading session.
Impact Justification
Temporary methodology change for Gold and Silver ETF price bands due to market volatility. Affects ETF trading parameters for one session. Medium importance as it impacts specific ETF segment rather than broad market.