The Securities and Exchange Board of India (Sebi) has proposed significant changes to the trading framework for Exchange-Traded Funds (ETFs). These reforms aim to enhance price discovery by introducing dynamic price bands and a new base price determination methodology. A pre-open call auction mechanism for commodity ETFs is also planned to better align trading limits with underlying asset movements.

India's markets regulator, SEBI, is proposing new rules for exchange-traded funds. These changes aim to bring the trading price of ETFs closer to the actual value of their…

Sebi has introduced a new framework for ETFs, replacing fixed price bands with dynamic limits and revising base price calculations. The changes aim to improve price discovery,…