(Reuters) -India’s markets regulator on Wednesday proposed to mandate that asset management companies use spot prices published by domestic commodity exchanges to value gold and silver.
To increase transparency on the polled price for the spot market of gold and silver, Securities and Exchange Board of India, in a consultation paper, also proposed that the price polling mechanism should be made public.
SEBI said the proposed changes are expected to bring uniformity in valuation of gold and silver throughout the mutual fund industry, and for investments made by the gold and silver exchange traded funds. It has sought feedback by August 6.
The proposals are being made during a period of increased interest in safe-haven assets due to ongoing global trade uncertainties.
Gold ETFs in India saw a ten-fold month-on-month jump in inflows to 20.81 billion rupees ($242.1 million) in June, hitting a five-month high.
($1 = 85.9580 Indian rupees)
(Reporting by Anuran Sadhu in Bengaluru; Editing by Shreya Biswas and Mrigank Dhaniwala)
