Norms for Base Price, Price Bands, Call Auction in pre-open session and Close-out procedure for Exchange Traded Funds (ETFs)

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ions" dated December 30, 2024 (hereinafter referred to as "Master Circular"), individual scrip wise price bands up to 20% either way for all scrips in the rolling settlement except for the scrips on which derivatives products are available, has been prescribed. Further, in terms of Paragraph 2.5 of Chapter 1 of the Master Circular, dynamic price bands (operating range) have been prescribed for scrips on which derivative products are available. These price bands are applied on the T-1 day closing price. 2. Currently, for Exchange Traded Funds (ETFs) (based on Equity, Debt and Commodities), a fixed price band of +20% (except for Overnight ETFs, for which the price band is +5%) is applicable on the base price, which is T-2 day Net Asset Val....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....se price w.e.f. April 01, 2027. 5. Price Bands for ETFs 5.1. For Equity ETFs and Debt ETFs (other than Overnight ETFs and Liquid ETFs): 5.1.1. For Equity ETFs and Debt ETFs (other than Overnight ETFs and Liquid ETFs), there shall be dynamic price bands, with an initial price band of +10%, which can be flexed upto +20% after a cooling off period. 5.1.2. The cooling off period shall be of 15 minutes after trades are executed at or above 9.90% and so on, during which trading shall continue within the prevailing price band. If the trades are executed at or above 9.90% and so on, during the last 30 minutes of trading, then the cooling-off period shall be of 5 minutes. 5.1.3. The price band would be flexed by 5% of the base price a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....adjustment (sliding) of the band on the opposite side. 5.3.5. Flexing of price band for an ETF at one exchange shall be applicable for other exchanges. 5.3.6. In the event of exceptional circumstances, where there is extreme price movement in the underlying commodities beyond the initial price band of 6% in the international markets, after the closure of trading of the ETFs on domestic exchanges, the stock exchanges can relax the initial price band, by giving appropriate notice to the market. 5.3.7. There will be no upper or lower cap of the price bands and no restriction on the number of times the price bands can be flexed during the trading session. 6. Close-out Procedure for ETFs 6.1. For Overnight ETFs and Liquid ETFs ....