Archive · 5 Jan 2026
SEBI Considers iNAV for ETF Pricing
SEBI is thinking about changing how exchange-traded funds (ETFs) are priced.
Right now, the price is based on the value from two days ago, which can be outdated.
They want to use a more recent value called iNAV from the previous day.
This change would make ETF prices more up-to-date with the market.
They are also considering making the price range more flexible, starting at ±10% and adjusting up to ±20% based on how the market moves.
This is to make ETF prices match better with the actual value of the underlying securities.
The industry body AMFI has some concerns, but SEBI believes this change will make things more accurate and easier to manage.
SEBI is considering using the latest available iNAV of the previous trading day (T-1) as the base price for ETF price bands.
Currently, ETFs use the NAV of two trading days earlier (T-2), creating a mismatch with the underlying securities' movements.
Exchanges have flagged practical difficulties with using T-1 day NAVs due to data publication delays by AMFI.
SEBI may permit the use of the latest available iNAV of T-1 day to address the one-day lag in ETF price band computation.
SEBI is also considering a flexible price band structure for ETFs, starting at ±10% and adjustable up to ±20% based on the underlying index movement.
- Who
- Securities and Exchange Board of India (SEBI)
- What
- Potential changes to ETF pricing and price bands
- When
- Discussions ongoing, no draft paper released yet
- Where
- India
- Why
- To address the one-day lag in ETF price band computation and reduce operational challenges
- Regulator
- Securities and Exchange Board of India (SEBI)
- Current Base Price
- Net Asset Value (NAV) of two trading days earlier (T-2)
- Proposed Base Price
- Latest available indicative Net Asset Value (iNAV) of the previous trading day (T-1)
- Current Price Band
- ±20%
- Proposed Price Band
- Initial ±10%, flexible up to ±20% based on underlying index movement
- Industry Body
- Association of Mutual Funds in India (AMFI)
- Purpose
- Reduce lag in ETF price band computation and operational challenges
