SEBI Extends Implementation Date for New ETF Trading Norms
SEBI Extends Implementation Date for New ETF Trading Norms
The Securities and Exchange Board of India (SEBI) has extended the effective date for implementing the provisions introduced through its circular dated June 15, 2026, concerning Exchange Traded Funds (ETFs).
Revised Implementation Date
SEBI had earlier prescribed September 1, 2026 as the date from which the provisions relating to ETFs would become applicable.
After considering feedback received from Market Infrastructure Institutions (MIIs), SEBI has decided to provide additional time to facilitate a smooth transition and implementation.
Accordingly, the provisions will now become effective from September 7, 2026, instead of September 1, 2026.
Key Areas Covered by the Earlier Circular
The June 15, 2026 circular prescribed requirements relating to:
- Base price determination for ETFs;
- Price bands;
- Call auction mechanism during the pre-open session; and
- Close-out procedures for ETF transactions.
Directions to Market Infrastructure Institutions
All concerned MIIs have been advised to undertake the necessary measures for timely implementation. This includes:
- Establishing and testing the required systems and processes;
- Making appropriate amendments to their applicable bye-laws, rules and regulations, wherever necessary; and
- Informing market participants, including investors, about the revised provisions and publishing the relevant information on their respective websites.
Other Provisions Remain Unchanged
SEBI has clarified that all other provisions of its June 15, 2026 circular will continue to remain applicable without any change.
The extension is intended to provide adequate time to the concerned entities for system readiness and ensure an orderly implementation of the revised framework for ETFs.
The circular has been issued under the powers conferred upon SEBI under the Securities and Exchange Board of India Act, 1992 and the applicable provisions governing stock exchanges and clearing corporations.
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