SEBI Proposes Dynamic Price Bands for Gold, Silver ETFs to Curb Volatility

• SEBI is preparing significant rule changes for gold and silver ETFs to address volatility and reduce mispricing.
• Current fixed price band of ±20% based on T-2 day NAV to be replaced with a dynamic band.
• New proposal: initial ±6% limit, gradually increasing up to ±20% with 3% flex and 15-minute cooling-off periods.
• Strict conditions for flex application: minimum 50 trades, 10 client codes, and 3 trading members required.
• Separate pre-open session proposed for gold and silver ETFs to align with global prices and prevent opening gaps.