Summary: The Securities and Exchange Board of India (SEBI) has extended the implementation timeline for the provisions of its Circular No. HO/47/11/11(1)2026-MRD-POD3/I/13804/2026 dated June 15, 2026 concerning norms for base price, price bands, call auction in the pre-open session and close-out procedure for Exchange Traded Funds (ETFs). The June 15, 2026 circular had originally provided that its provisions would come into effect from September 1, 2026.
According to the present circular, SEBI has taken the decision to extend the implementation timeline based on feedback received from Stock Exchanges and with a view to ensuring smooth implementation of the provisions. The revised effective date is now September 7, 2026, instead of September 1, 2026. The circular expressly states that all other provisions of the June 15, 2026 circular will remain unchanged.
The extension therefore relates to the implementation timeline rather than any substantive alteration to the ETF framework prescribed by the June 15 circular. The earlier circular covers the revised framework concerning base price, price bands, pre-open call auction and close-out procedure for ETFs. The present circular changes only the date from which those provisions are to come into effect. The June 15 circular had prescribed September 1, 2026 as its implementation date.
All Market Infrastructure Institutions (MIIs) are advised to take necessary steps and put in place the systems required for implementation, make necessary amendments to relevant bye-laws, rules and regulations wherever required, and bring the provisions of the circular to the notice of market participants, including investors, while disseminating the same on their websites.
The circular has been issued under section 11(1) of the Securities and Exchange Board of India Act, 1992 read with Regulation 51 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018. The supplied material does not identify any separate TaxGuru publication specifically corresponding to either section 11(1) or Regulation 51; accordingly, no unsupported internal link has been inserted for those references.
Securities and Exchange Board of India
Circular No. HO/47/11/11(1)2026-MRD-POD3/I/19839/2026 | August 28, 2026
To
All Recognized Stock Exchanges
All Recognized Clearing Corporations
All Asset Management Companies of Mutual Funds
Association of Mutual Funds in India
Sir/Madam,
Subject: Extension of timeline for implementation of provisions of SEBI Circular dated June 15, 2026 on norms for base price, price bands, call auction in pre-open session and close-out procedure for Exchange Traded Funds (ETFs)
1. SEBI vide Circular No. HO/47/11/11(1)2026-MRD-POD3/I/13804/2026 dated June 15, 2026 has provided for various norms related to base price, price bands, call auction in pre-open session and Close-out procedure for Exchange Traded Funds (ETFs).
2. As per paragraph 8 of the aforesaid circular, the provisions of the circular were to come into effect from 1st September 2026.
3. Based on the feedback received from Stock Exchanges; and in order to ensure smooth implementation of the provisions of the aforementioned circular, it has been decided to extend the timeline for implementation of the said circular. The circular shall now come into effect from 7th September 2026.
4. All other provisions of SEBI Circular dated June 15, 2026 shall remain unchanged.
5. All MIIs are advised to:
i. take necessary steps and put in place necessary systems for implementation of the above.
ii. make necessary amendments to the relevant byelaws, rules and regulations, wherever required, for the implementation of the above; and.
iii. bring the provisions of this circular to the notice of the market participants (including investors) and disseminate the same on their website.
6. This circular is issued in exercise of the powers conferred under section 11(1) of the Securities and Exchange Board of India Act 1992 read with Regulation 51 of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
7. This circular is available on SEBI website at www.sebi.gov.in at “Legal Framework – Circulars.”
Yours faithfully,
Lamber Singh
General Manager
Market Regulation Department
Tel: 022-26449667
Email: [email protected]
