Securities and Exchange Board of India (SEBI) introduces new framework for Exchange Traded Funds (ETFs)

Exam-focused facts from the 18 June 2026 current affairs briefing.

Key facts

The Securities and Exchange Board of India (SEBI) will implement a new framework for Exchange Traded Funds (ETFs) from September 1, 2026, replacing fixed price bands with dynamic price bands.
Equity and debt ETFs, excluding overnight and liquid ETFs, will have an initial dynamic price band of 10%, which can be expanded up to 20% in 5% increments.
Commodity ETFs tracking gold and silver will have an initial price band of 6%, which can be expanded in stages of 3%.
The base price for ETFs will be determined using the previous day's closing price, calculated as the volume-weighted average price during the last 30 minutes of trading.
SEBI has mandated a pre-open call auction session for gold and silver ETFs to improve price discovery.