SEBI proposes to review base price and price band for ETF

Securities and Exchange Board of India (SEBI) is acceptable to reappraisal the basal terms and terms set of Exchange Traded Fund (ETF), according to a consultation insubstantial released connected Friday (February 13, 2026).

Market regulator said Closing terms of ETFs connected T-1 Day (i.e. weighted mean traded terms of past 30 minutes), Average iNAV (indicative NAV) of past 30 minutes connected T-1 Day oregon Closing NAV of T-1 Day if available. Currently, the closing Net Asset Value (NAV) of T-2 time (two days earlier) is utilized arsenic the basal price. This introduces an inherent two-day lag.

“Currently,  the corporate actions, specified as  bonus,  dividends,  etc., effectual on  T-1 Day, are being adjusted manually successful the T-2 Day closing NAV for the intent of determination of the basal price. This manual process increases the hazard of errors and omissions of definite firm action,” SEBI said successful the paper.

The terms set is projected to beryllium fixed astatine a higher oregon little than 10% for equity and indebtedness ETF, and 6% for commodity derivatives. SEBI said that the existent terms set “may not beryllium commensurate with the maximum permissible terms scope of the underlyingwhich is babelike connected the T-1 Day closing price.”

SEBI is unfastened for nationalist comments till March 6 2026.