Sebi proposes changes to ETF trading norms (opens original article in a new tab)

Sebi proposed changes to ETF trading norms to improve price discovery by introducing dynamic price bands, new base price methodology, and pre-open call auction mechanism for commodity ETFs.

• Sebi proposed changes to ETF trading norms including dynamic price bands and new base price methodology
• The new framework aims to improve price discovery and align trading limits with underlying asset movements
• Sebi noted existing framework had a one-day lag in ETF base prices and fixed price bands that didn't reflect underlying asset price ranges