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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

BSE issues circular regarding Norms for Base Price, Price Bands, Call Auction in pre-open session and Closeout procedure for Exchange Trade Funds (ETFs)

04-Sep-2026 | 20260904-19

BSE has issued circular regarding Norms for Base Price, Price Bands, Call Auction in pre-open session and Closeout procedure for Exchange Trade Funds (ETFs) Through this circular, with reference to Exchange notice 20260616-23 and 20260828-11, the following changes have been introduced which will be effective from 7th September, 2026: 1. Base price of an ETF: The T-1 day closing price, based on the VWAP of the last 30 minutes of trading, shall be used to determine the price bands. 2. Equity and Debt ETFs (excluding Overnight and Liquid ETFs): Initial price band of ±10%, which may be flexed up to ±20% after a cooling-off period. There is no upper/lower cap or limit on the number of flexes during the trading session. 3. Overnight ETFs and Liquid ETFs shall have fixed price band of +/- 5% 4. Commodity ETFs (Gold/Silver): Dynamic price band of ±6% initially, which may be flexed by 3% of the base price after a cooling-off period. 5. Commodity ETFs (Gold/Silver): A Call Auction will be conducted during the pre-open session. The new parameters will be effective from September 7, 2026, and were available for testing on the September 5, 2026 mock trading day. For more information, please refer the attached pdf.

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