# SEBI tightens vault rules for gold and silver ETFs Author: Hatice Ertaş Language: English Published: 2026-09-28T01:42:38+03:00 Updated: 2026-09-28T01:42:38+03:00 ![Vault composition showing gold and silver bars held in separate trays in front of a SEBI plaque.](https://kriptometa.com/uploads/sebi-den-altin-ve-gumus-etf-lerine-daha-siki-kasa-kurallari-6484_article.webp) ## Key takeaways - SEBI approved a broader custody framework for gold and silver ETFs and bullion derivatives on September 24. - Vault managers’ minimum net worth will rise from ₹50 crore to ₹75 crore, a 50% increase. - The changes provide for separation by product and entity, stronger security and a compliance officer; implementation details will follow. India is bringing physical bullion held for gold and silver ETFs into a common vaulting framework. Changes approved by SEBI raise vault managers’ minimum net worth by 50% and strengthen the separation of bullion held for different products and entities. India is preparing tighter custody rules for the physical bullion backing gold and silver ETFs. Securities regulator SEBI approved a broader vaulting framework on September 24. Vault managers’ minimum net worth is also set to rise from ₹500 million to ₹750 million. Reporting the details of decisions taken at the [September 24 board meeting](https://www.sebi.gov.in/media-and-notifications/press-releases/sep-2026/key-decisions-taken-in-the-sebi-board-meeting-dated-24th-september-2026_104725.html), [Mint said](https://www.livemint.com/money/personal-finance/your-gold-or-silver-etf-holds-physical-bullion-heres-what-sebis-new-vault-rules-mean-for-investors-11790518596044.html) the 2021 vault-manager framework would expand beyond Electronic Gold Receipts. Physical metal held for gold and silver ETFs and bullion derivatives will fall within the common framework. ## Vault managers face a 50% higher net-worth threshold The threshold moves from ₹50 crore to ₹75 crore in Indian numbering, a 50% increase. It concerns the financial strength of the company operating the vault, rather than the minimum amount an investor must put into an ETF. The changes also provide for separating bullion according to the product and entity for which it is held. Security requirements will be strengthened for risks including theft, fire, fraud and cyberattacks, while managers will need a compliance officer. Broader bullion delivery standards will replace standards specific to Electronic Gold Receipts. ## ETF shares on screen, bullion in the vault An ETF investor sees fund units in an account; the underlying metal depends on institutions in the custody chain. The [distinction between shares and underlying assets familiar from spot Bitcoin ETFs](https://kriptometa.com/en/glossary/spot-bitcoin-etf) applies here to physical gold and silver. Custody requirements still depend on the jurisdiction and product: SEBI’s decision does not automatically extend to ETFs elsewhere. **A stronger vault does not fix the price:** The framework targets how metal is stored and accounted for. Gold and silver can still fall in market value, while fund expenses and tracking performance continue to affect an investor’s result. Board approval should not be read as confirmation that every new requirement is already operational. Further SEBI regulatory documents and an implementing circular are expected. Those texts, alongside fund disclosures, will clarify the practical changes to custody arrangements.