New price band and pre-open rules for ETFs from September 7, 2026

[rihan_baji]

SEBI has introduced new rules for price bands and base prices for ETFs. It has also introduced a pre-open call auction for Gold and Silver ETFs.

The rules were originally scheduled to come into effect from September 1, 2026, but the implementation has been extended to September 7, 2026.

We’ve published a Z-Connect post here:

Changes to the pre-open session and ETF price bands

SEBI Circulars:

• Norms for Base Price, Price Bands, Call Auction in pre-open session and Close-out procedure for ETFs - June 15, 2026

• Extension of implementation timeline - August 28, 2026

[BB789]

@rihan_baji

Instead of using the T-2 NAV, the base price will now be determined in this order:

1. T-1 closing price — VWAP of the last 30 minutes.
2. If there was no trade during the last 30 minutes — T-1 Last Traded Price (LTP).
3. If there was no trade at all on T-1 — latest available closing NAV.

The base price will also be adjusted for corporate actions, if any.

From April 1, 2027, the base price is expected to move to the T-1 closing NAV.

Does this apply for international etfs as well? Without NAV anchor, those things will rip if based on closing price