SEBI proposes to review base price and price band for ETF

Securities and Exchange Board of India (SEBI) is set to review the base price and price band of Exchange Traded Fund (ETF), according to a consultation paper released on Friday (February 13, 2026).

Market regulator said Closing price of ETFs on T-1 Day (i.e. weighted average traded price of last 30 minutes), Average iNAV (indicative NAV) of last 30 minutes on T-1 Day or Closing NAV of T-1 Day if available. Currently, the closing Net Asset Value (NAV) of T-2 day (two days earlier) is used as the base price. This introduces an inherent two-day lag.

“Currently,  the corporate actions, such as  bonus,  dividends,  etc., effective on  T-1 Day, are being adjusted manually in the T-2 Day closing NAV for the purpose of determination of the base price. This manual process increases the risk of errors and omissions of certain corporate action,” SEBI said in the paper.

The price band is proposed to be fixed at a higher or lower than 10% for equity and debt ETF, and 6% for commodity derivatives. SEBI said that the current price band “may not be commensurate with the maximum permissible price range of the underlyingwhich is dependent on the T-1 Day closing price.”

SEBI is open for public comments till March 6 2026.