SEBI, vide this circular, revised the ETF trading framework, covering base price, dynamic price bands, a pre-open call auction for commodity ETFs, and close-out norms, effective from September 1, 2026, as follows:
The base price for determination of price bands of ETFs will be T-1 day Closing Price i.e. last 30 minutes of Volume Weighted Average Price (VWAP) of the ETF.
For Equity ETFs and Debt ETFs (other than Overnight ETFs and Liquid ETFs), there will be dynamic price bands, with an initial price band of +10%, which can be flexed upto +20% after a cooling off period.
Overnight ETFs and Liquid ETFs shall have a fixed price band of +5%.
For Commodity ETFs, there will be dynamic price bands, with an initial price band of +6%.
The price band would be flexed by 3% of the base price, after a cooling off period.
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