Sebi revamps ETF trading framework, introduces dynamic price bands (opens original article in a new tab)

Sebi has updated ETF trading rules to implement dynamic price bands, replacing fixed limits to better reflect underlying asset values. The changes include varying band sizes and cooling-off periods for different ETF types, effective September 2026.

• Sebi revised ETF trading rules to use a dynamic price band system instead of fixed bands.
• Equity and debt ETFs will have a 10% initial price band, expandable to 20% with cooling-off periods.
• Commodity ETFs with gold and silver will start with a 6% band, expandable in 3% increments.