Loading price data
Scrap Monster
Access the
Platform
ScrapMonster has become North America's largest scrap trading platform with 93,122 members and the trusted source for scrap prices, news, and information. Join Today!
Silver November 26, 2021 01:25:07 PM

SEBI Announced Operating Guidelines for Silver ETFs

Paul Ploumis
ScrapMonster Author
As per the circular released by the market regulator, silver ETFs will have to invest at least 95% of net assets in silver and silver-related instrument.

SEBI Announced Operating Guidelines for Silver ETFs

SEATTLE (Scrap Monster): The Securities and Exchange Board of India (SEBI) announced operating norms for silver exchange-traded funds (ETFs). The move is aimed at ensuring exposure to the metal in a more transparent manner.

As per the circular released by the market regulator, silver ETFs will have to invest at least 95% of net assets in silver and silver-related instrument. Furthermore, the Exchange Traded Commodity Derivatives (ETCDs) that have silver as the underlying will be considered as a silver-related instrument. The investment in them will be limited by certain conditions such as the exposure should be only up to 10% of the net asset value of the scheme, although this limit will not be applicable to silver ETFs. However, the cumulative gross exposure of silver ETFs must not exceed 100% of the net assets of the scheme.

RELATED NEWS:

BSE Seeks SEBI Approval to Launch Electronic Gold Receipts

SEBI Ratified Framework for New Gold Exchange

The mutual funds who wish to invest in ETCDs having silver as the underlying are required to submit a written policy with due approval from the board of asset management company (AMC) and trustees. Also, the policy must be reviewed at least once in a year by the board of AMC and trustees.

SEBI also noted that the silver ETF scheme will be benchmarked based on LBMA Silver daily sopt-fixing.

×