BSE Revises ETF Price Bands to T-1 NAV After Sharp Sell-off in Gold and Silver

On Sunday gold and silver exchange traded funds recorded sharp declines, prompting the Bombay Stock Exchange (BSE) to revise the price‑band reference from T‑2 to T‑1 net asset value. 

Gold and silver ETFs fall sharply on Sunday 

Gold ETFs slipped almost 7% during the session, marking an 18% correction from the record peak reached on January 29. Silver ETFs were largely halted after breaching the 20% lower circuit, despite a session decline of roughly 10‑15%. 

BSE changes price‑band calculation to T‑1 NAV 

ETFs normally operate within a fixed ±20% band based on the NAV of two trading days earlier (T‑2). In a circular issued on Sunday, March 31, 2024, BSE announced that the reference price for gold and silver ETFs will now be the T‑1 NAV published by the respective mutual funds, with the same ±20% band applied. 

Read More: Silver ETFs in Focus as Global Silver Prices Witness Record One-Day Fall Ahead of Budget 2026! 

International metal price movements drive ETF decline 

International spot gold fell close to 10% on Friday, the steepest single‑day drop since 1983, after the US President announced his choice for the Federal Reserve chair. Silver slumped nearly 30%, its worst day on record. The strengthening US dollar and profit‑taking were cited as the main drivers of the price fall. 

Conclusion 

Gold ETFs have corrected 18% from recent highs while silver ETFs triggered the lower circuit. BSE’s shift to a T‑1 NAV reference aims to align price bands with current market volatility. The declines mirror sharp drops in global gold and silver prices following major US monetary news. 

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