The Securities Exchange Board of India vide circular dated November 24, 2021 has provided the Norms for Silver Exchange Traded Funds(Silver ETFs) and Gold Exchange Traded Funds (Gold ETFs). A Silver ETF Scheme shall invest at least 95% of the net assets of the scheme in Silver or Silver related instruments. To enable the investors to take an informed decision, the SID of Silver ETFs shall, inter-alia, disclose the following:
- Tracking error and tracking difference;
- Market risk due to volatility in silver prices;
- Liquidity risks in physical or derivative markets impairing the ability of the fund to buy and sell silver;
- Risks associated with handling, storing and safekeeping of physical silver;
- Applicable tax provisions.
