Sebi revamps ETF trading rules, introduces dynamic price bands from September

SEBI has revamped ETF trading rules effective September 1, 2026, replacing the fixed 20% price band based on T-2 NAV with dynamic price bands. Equity and debt ETFs (excluding overnight and liquid) will have an initial 10% band expandable to 20% in 5% increments after cooling-off, while gold and silver commodity ETFs will have an initial 6% band. Base prices will shift to previous day's closing price (VWAP of last 30 minutes) instead of T-2 NAV, with a pre-open call auction mandated for gold and silver ETFs to better track international prices.