Sebi on Thursday directed mutual funds to use domestic stock exchange spot prices for valuing their physical gold and silver holdings from April 1, 2026, in a move aimed at aligning valuations more closely with local market conditions.

Sebi said mutual funds will be allowed to use polled spot prices published by recognised stock exchanges that settle physically delivered gold and silver derivative contracts. The revised methodology will apply to gold and silver held by mutual fund schemes, including exchange-traded funds.

The change marks a shift from the current practice of using London Bullion Market Association benchmark prices for the valuation of precious metal holdings.

Sebi said the decision followed discussions in the Mutual Fund Advisory Committee, public consultations and deliberations with industry stakeholders.

“Polled spot prices published by recognised stock exchanges may be used for valuation of gold and silver held by mutual fund schemes. As stock exchanges are subject to transparency and compliance requirements under the regulatory framework, using spot prices published by such regulated entities will lead to valuations that reflect domestic market conditions and ensure uniformity in valuation practices,” Sebi said.

The regulator added that the Association of Mutual Funds in India, in consultation with Sebi, will prescribe a uniform valuation policy to be followed by asset management firms.

Meanwhile, Sebi on Thursday cautioned investors against fake notices being circulated in its name, demanding payments of Securities Transaction Tax.