ETF price bands and base price norms revised with dynamic flexing, pre-open auction for commodity ETFs, and close-out rules. Norms are prescribed for ETFs on base price determination, dynamic or fixed price bands, pre-open call auction for commodity ETFs, and close-out procedure. The base price is initially linked to T-1 day closing price based on the last 30 minutes of VWAP, with fallback to last traded price or closing NAV, and is to be adjusted for corporate actions. Dynamic bands apply to equity, debt and commodity ETFs with specified cooling-off and flexing mechanisms, while overnight and liquid ETFs retain a fixed 5% band. Close-out rules and pre-open call auction provisions are also specified, and the circular operates from 1 September 2026.
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ETF price bands and base price norms revised with dynamic flexing, pre-open auction for commodity ETFs, and close-out rules.
Norms are prescribed for ETFs on base price determination, dynamic or fixed price bands, pre-open call auction for commodity ETFs, and close-out procedure. The base price is initially linked to T-1 day closing price based on the last 30 minutes of VWAP, with fallback to last traded price or closing NAV, and is to be adjusted for corporate actions. Dynamic bands apply to equity, debt and commodity ETFs with specified cooling-off and flexing mechanisms, while overnight and liquid ETFs retain a fixed 5% band. Close-out rules and pre-open call auction provisions are also specified, and the circular operates from 1 September 2026.
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