DSP MF files draft document for Silver ETF with SEBI

The scheme will invest in physical silver and silver related instruments as permitted by the regulator from time to time. The physical silver standard should be 30 kg bars with 999 parts per thousand with 99.9% purity, confirming to the London Bullion Market Association (LBMA) Good Delivery Standards.

Note that Exchange Traded Commodity Derivatives (ETCDs) that have a silver underlying will be considered a ‘silver related instrument’.

The scheme will use a passive approach and attempt to generate returns that are commensurate with the performance of physical silver in domestic prices, subject to tracking error. It will be managed by Sahil Kapoor and LBMA silver will be benchmarked against the domestic price of physical silver on the basis of daily spot-fixing price.

The minimum application amount after the start of the NFO period is 5,000 and in multiples of Re 1 thereof. Investors can subscribe (buy) and redeem (sell) units on an ongoing basis on the NSE/BSE on which the units will be listed. Units of the scheme can be bought and sold on the exchange for a minimum of one unit and multiples thereof.

The scheme offers subscription/redemption directly from the fund to only authorized participants and large investors in “Creation Unit Size” on all business days. Each “Creation Unit” consists of 30,000 units of the DSP Silver ETF.

In case of unit holders whose email addresses are registered with the fund, AMC will send monthly/half yearly portfolio through email within 10 days from the end of each month/half year. Monthly/half yearly portfolio of the scheme will be available on AMFI website in user friendly and downloadable spreadsheet format.

On specific request received from the unitholder, the AMC will provide a physical copy of the scheme portfolio details without any charges.