Market News
Sebi's New ETF Rules to Enhance Price Discovery
Published 2026-06-18 · Bazaar Watch Research
- From September 1, Sebi changed ETF price bands to use the previous day's closing market price.
- Gold and silver ETFs now have dynamic price bands and a pre-open auction mechanism.
- Outdated T-2 NAV-based price bands caused ETF prices to disconnect from underlying asset values.
- Past events, like 14-16% silver ETF premiums, highlighted the need for better price alignment.
- Retail investors should experience smoother ETF trading and fairer prices, especially during volatility.
- Traders in gold and silver ETFs will likely see reduced sharp price swings at market open.
- Understand that while price discovery improves, ETF premiums and discounts may not disappear entirely.
- Be aware that trading pauses during market stress are brief, allowing for orderly exits.