Overview
- At least six fund houses — Kotak, SBI, UTI, Tata, ICICI Prudential and Groww — have paused fresh lump-sum and switch-in subscriptions to Silver ETF Funds-of-Funds, with most describing the move as temporary.
- Schemes are keeping SIP, STP and redemption facilities running, though some imposed limits or halted new registrations, such as UTI’s cap on new systematic plans and Tata’s suspension of fresh SIP/STP sign-ups.
- Notices cite limited availability of physical silver in India and unusually high domestic premiums over import-parity prices, which have constrained fair creation of new ETF units at iNAV; SBI’s notice was signed by CEO Nand Kishore.
- Analysts and fund communications point to domestic premiums reported around 10–12% versus a typical 0.5%, alongside intraday spikes noted in an Axis MF report, while global spot silver recently touched about $52.59/oz and Indian prices hit record levels on MCX.
- Silver ETFs continue to trade on exchanges, but units are also reflecting the premium, and market experts characterize the inflow curbs as precautionary steps expected to ease once supply improves and pricing normalizes.