The Securities and Exchange Board of India (SEBI) on February 13, 2026, issued a Draft Consultation Paper on Review of provisions related to Base Price and Price Bands for Exchange Traded Funds (ETFs).
The following has been stated: -
•Securities and Exchange Board of India issued a consultation paper seeking public comments on revising base price and price band rules for ETFs.
•It proposes replacing the current T-2 NAV-based base price with more recent references like T-1 closing price, T-1 NAV, or average iNAV to remove pricing lag and manual adjustments.
•New dynamic price band structure suggested: +10% initial (flexible to +20%) for equity/debt ETFs, +6% initial (flexible) for gold/silver ETFs, while Overnight ETFs remain at +5%.
•The aim is to better align ETF trading ranges with underlying asset volatility, improve accuracy, and enhance market stability.
•The comments/suggestions should be submitted by March 06, 2026
