This could lead to a major shake-up in the ETF segment.
SEBI stated that currently, there are individual scrip-wise price bands of up to 20% either way, applicable for all scrips in the rolling settlement except for the scrips on which derivative products are available.
Restrictive Price Bands
Restrictive price bands are also applicable for scrips under various surveillance measures. Further, 10%, 15% and 20% market-wide circuit breakers are triggered by the movement of either the BSE Sensex or the NSE Nifty 50, whichever is breached earlier.
The regulatory body pointed to the recent volatility in the ETF market and said, “Considering the recent high volatility (during the last week of January, 2026) in gold and silver prices in the domestic/international market, the existing price bands for gold/silver ETFs (based on T-2 NAV) had become inadequate to ensure alignment of their market prices with the underlying assets.”
SEBI, to address this issue, as an interim measure, T-1 Day Closing NAV/Closing Price was used as the base price by exchanges for Gold/Silver ETFs, the same being available due to a holiday between T-1 day and T day.
Volatility in the ETF Segment
In addition, SEBI has proposed an initial price band of plus or minus 10% for equity and debt ETFs, which can be flexed up to plus or minus 20%. Here, a cooling-off period of 15 minutes will apply, and up to two flexes will be allowed in a day.
For gold and silver ETFs, the regulatory body has proposed an initial price band of plus or minus 6%, which can be flexed up to plus or minus 20%. This will also include a 15-minute cooling-off period.
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