As per regulations, ETF (Exchange Traded Fund) circuit limits are set by the exchange based on the T-2 day NAV (Net Asset Value) published by the AMC (Asset Management Company), not the ETF's last traded price (LTP). You can check the AMC’s website for NAV.
Since exchanges base circuit limits on NAV rather than LTP (Last Traded Price), the lower circuit can be higher than the LTP, or the upper circuit can be lower than the LTP. This happens because:
- The ETF's market price (LTP) can trade at a premium or discount to its NAV
- The T-2 day NAV may differ significantly from the current market price
Example scenario
In the case of SILVERBEES ETF, where the lower circuit is ₹287.46, and the LTP is ₹286.48, fresh sell orders below ₹287.46 will be rejected, even if the LTP is trading below that level.