ETF trading rules 2026: New price bands, pre-open session and what investors should know?

From September 7, 2026, the ETF trading rules 2026 changed how ETFs get their base price and price bands. The changes also bring Gold and Silver ETFs into the pre-open call auction. SEBI initially planned implementation for September 1, but later extended the date.

The ETF trading rules 2026 use a more recent reference price for most ETFs. The base price is now based on the previous day's closing price, with the last 30-minute VWAP used when available. There will be an initial 10% price band applicable to equity and debt ETFs, which will be expandable up to 20%. On the other hand, Gold and Silver ETFs will have an initial price band of 6%.

SEBI's June 15, 2026 circular changed the rules for ETF base prices, price bands, pre-open call auctions and close-out procedures. The implementation was later moved from September 1 to September 7, 2026.

Earlier, ETF price bands were based on the T-2-day NAV. SEBI has now moved to a more recent market-based reference.

The base price is the T-1 day closing price, calculated using the ETF's VWAP during the last 30 minutes of trading. If there is no trading during those 30 minutes, the day's Last Traded Price is used. If the ETF does not trade at all on T-1, the latest available closing NAV becomes the base price.

The base price is also adjusted for corporate actions where applicable.

For equity and debt ETFs, excluding Liquid and Overnight ETFs, the initial price band is 10%. It can be widened by 5% after a cooling-off period, up to 20%. The cooling-off period is 15 minutes, or 5 minutes when the threshold is reached during the last 30 minutes of trading. The band is widened only in the direction of the price movement.

Liquid and Overnight ETFs continue to have a fixed 5% price band.

Gold and Silver ETFs have an initial 6% price band, which can be widened by 3% after the cooling-off period. In certain cases, exchanges can widen it further when international commodity prices move beyond the specified Daily Price Limit.

Example: If an equity ETF has a base price of Rs 100, its initial 10% price band allows trading between Rs 90 and Rs 110. For a Gold or Silver ETF with a base price of Rs 100, the initial 6% band allows trading between Rs 94 and Rs 106.

One of the key changes in the ETF trading rules 2026 is the inclusion of Commodity ETFs in the pre-open call auction.

Gold and Silver ETFs can now participate in the pre-open session before regular trading begins. The call auction is used to discover an equilibrium price for these ETFs.

The important point is that not all ETFs are entering the pre-open session. The SEBI circular specifically covers Commodity ETFs based on gold and silver.

The broader pre-open session continues before the regular market opens at 9:15 AM.

SEBI has also revised the close-out procedure for Overnight and Liquid ETFs.

For these ETFs, the close-out price is the higher of the highest price recorded in the relevant settlement period up to the auction or close-out date, or 5% above the latest available closing price on the day auction offers are called.

The existing close-out provisions continue for other ETFs.

The revised ETF trading rules took effect on September 7, 2026. SEBI had initially set September 1 as the implementation date, but later extended the deadline after receiving feedback from stock exchanges. The extension was made to give exchanges more time for implementation.

The ETF trading rules 2026 change the base price, price bands, and pre-open trading for Commodity ETFs. Gold and Silver ETFs now have a 6% initial band and can participate in the pre-open call auction.

Investors should check the ETF category, current base price and applicable price band before placing an order.

Ans. The revised rules change the ETF base price, price bands, pre-open call auction and certain close-out procedures. They took effect on September 7, 2026.

Ans. The base price is based on the previous day's closing price, using the last 30-minute VWAP. If there is no qualifying trade, the Last Traded Price or latest available closing NAV is used.

Ans. Equity and Debt ETFs are provided with an initial 10% band, which may be expanded to 20%. Liquid and Overnight ETFs are given a fixed 5% band, while Gold and Silver ETFs start with a 6% band.

Ans. Gold & Silver ETFs can trade during the pre-open auction call under the new regime. The other types of ETFs do not join the pre-open Commodity ETF auction.

Ans. The revised ETF trading rules took effect on September 7, 2026.

• SEBI: Circular on ETF trading norms, dated June 15, 2026

• SEBI: Extending the implementation date, dated August 28, 2026

• NSE: Circulars for listed companies - Equity