Description
NSE updates reference price methodology for Gold & Silver ETFs to T-1 NAV due to volatility in underlying prices, effective February 03, 2026.
Summary
NSE has updated the reference price methodology for Gold & Silver ETFs traded on the exchange due to volatility in underlying commodity prices. Effective February 03, 2026, the reference price will be based on T-1 NAV published on the AMFI website. For ETFs where T-1 NAV is unavailable, the closing price of February 02, 2026 will be used as reference. The prescribed price band of +/- 20% will apply to this reference price.
Key Points
- Reference price for Gold & Silver ETFs will be based on T-1 NAV from AMFI website
- For ETFs without T-1 NAV on AMFI website (as of Feb 02, 2026), closing price of February 02, 2026 will be used
- Price band of +/- 20% applicable to the T-1 NAV/closing price
- Change driven by volatility in underlying Gold & Silver prices
- Replaces previous methodology outlined in earlier circulars
Regulatory Changes
NSE has modified the reference price determination methodology for Gold & Silver ETFs. Previously referenced circulars NSE/SURV/19758 (January 05, 2012), NSE/SURV/72554 (February 01, 2026), and NSE/SURV/72566 (February 01, 2026) are superseded by this updated approach specifically for precious metal ETFs.
Compliance Requirements
- Trading Members must use the new reference price methodology for Gold & Silver ETF trading
- Reference price determination must follow T-1 NAV from AMFI website as primary source
- Apply +/- 20% price band to the determined reference price
- Members should direct queries to surveillance@nse.co.in
Important Dates
- Circular Date: February 02, 2026
- Effective Date: February 03, 2026 (next trading session)
- Reference Date for Closing Price (if T-1 NAV unavailable): February 02, 2026
Impact Assessment
Market Impact: High - This change directly affects price discovery and trading bands for all Gold & Silver ETFs on NSE. The shift to T-1 NAV-based reference pricing provides more stability during volatile commodity price movements.
Operational Impact: Trading members must immediately update their systems to incorporate the new reference price methodology. The change is effective for the very next trading session, requiring swift operational adjustments.
Investor Impact: The +/- 20% price band based on T-1 NAV may provide better alignment with underlying asset values and reduce excessive intraday volatility in ETF prices during periods of high commodity price fluctuation.
Impact Justification
Immediate change in reference price methodology for Gold & Silver ETFs effective next trading day, impacting price bands and trading parameters due to market volatility