Close-Out Procedure for Shortages in Overnight ETFs and Liquid ETFs · 20260904-26

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NOTICE

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Dear Members,

Subject - Close-Out Procedure for Shortages in Overnight ETFs and Liquid ETFs

This is further to BSE CL circular no. 20260831-21 – ‘Extension of timeline for implementation of provisions of SEBI Circular No. HO/47/11/11(1)2026-MRD-POD3/I/13804/2026 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)’.

The close-out procedure for overnight ETFs and liquid ETFs will be as under:

Any shortages arising in the Normal Market segment in respect of Overnight ETFs and Liquid ETFs, where the securities are not available for procurement through the auction market, where the auction seller fails to deliver the securities either wholly or partly on the auction pay-in day; or

Where auction pay-out cannot be completed on or before one business day prior to the Record Date/Book Closure Date, shall be compulsorily closed out at the higher of:

• a) The highest price prevailing across the recognized stock exchanges from the date of original trade execution up to and including the auction day;

  OR

• b) 5% above the settlement price of the security on the auction day.

The above provisions shall be effective from trade date September 07, 2026 (T Day), i.e. shortages of settlement number 2627710.

For and on behalf of BSE Clearing Limited
(Formerly known as Indian Clearing Corporation Limited.)