SEBI Tightens Vault Manager Rules, Extends to Gold ETFs and Derivatives

SEBI has widened its bullion vault manager framework to include gold exchange‑traded funds and derivatives, and raised the net‑worth threshold for vault managers to Rs 75 crore while adding stricter safeguards. Earlier the rules applied only to Electronic Gold Receipts. The new rules now cover bullion that backs specified ETFs and derivative contracts. Vault managers must now meet the Rs 75 crore net‑worth condition. SEBI also tightened security, segregation, compliance and governance requirements for storage of the bullion. The changes aim to improve investor protection and market integrity by ensuring that bullion backing these products is stored safely and is clearly segregated from other assets. The revised framework also requires vault managers to follow tighter governance norms, reducing risk of misuse.