SEBI to Introduce New Price Band Rules for Gold-Silver ETFs to Protect Investors

• SEBI proposes new 'price band' rules for gold and silver ETFs to curb sharp fluctuations and protect investors.
• Current system allows ETF prices to surge significantly above actual commodity prices, leading to investor losses.
• New proposal includes an initial ±6% price band with a 15-minute 'cooling-off' period, extendable up to ±20% daily.
• Base price determination will be improved using the previous day's average trading price or NAV for more realistic opening prices.
• New rules aim to keep ETF prices aligned with physical gold/silver, reducing risk for short-term investors.