SEBI overhauls ETF price bands in India from September 2026
SEBI is making big changes to how exchange-traded funds (ETFs) trade in India.
Starting September 2026, fixed price bands are being replaced for most equity and debt ETFs, while liquid and overnight ETFs keep a fixed 5% band and commodity ETFs backed by gold and silver follow a separate framework, so ETF prices can track their actual value more closely.
This update is intended to help ETF prices better reflect the value of their underlying assets.
VWAP limits, gold and silver auctions
Instead of using fixed bands for most equity and debt ETFs, ETF prices will now move within flexible limits based on the previous day's closing market price, calculated as the VWAP during the last 30 minutes of trading, with fallback rules if there were no trades.
For equity and debt ETFs, the limit starts at 10% and can widen by 5% after short pauses if needed. Gold and silver ETFs get a 6% band that adjusts by 3%.
Plus, pre-open call auctions will now be standard for gold and silver ETFs to help set fairer opening prices, especially since these metals trade globally around the clock but not always during Indian market hours.