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The Sebi move seeks to remove the one-day lag that can misalign price bands with prevailing market conditions, particularly during periods of volatility.
Securities and Exchange Board of India (SEBI) is set to review the base price and price band of Exchange Traded Fund (ETF), according to a consultation paper released on Friday (February 13, 2026).
The existing method of computation has a one-day lag in reference pricing and requires manual adjustments and has risk of errors.
SEBI proposes T-1 reference price and dynamic bands for ETFs to enhance price accuracy and reduce operational delays.
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Nair said that when he joined, many processes were still manual and technology use was limited to core banking.
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