In SpaceX’s case, appetite was exceptionally high. The underwriters, which included Goldman Sachs, Bank of America, and JPMorgan, exercised the option in full, purchasing an additional 83.3 million shares directly from the company to meet the huge demand.

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The new rules will come into effect from September 1, 2026, according to a circular issued by the regulator on Monday.

At present, ETFs are subject to a fixed 20% price band based on the net asset value (NAV) from two trading days earlier. SEBI said the existing framework creates challenges because of the one-day lag in price discovery and because the fixed bands do not adequately reflect movements in the underlying assets.

Under the revised framework, equity ETFs and debt ETFs, excluding overnight and liquid ETFs, will have an initial dynamic price band of 10%, which can be expanded up to 20% after a cooling-off period. The price band will be widened by 5% increments if prices hit the upper threshold during trading.

Commodity ETFs tracking gold and silver will have an initial price band of 6%, which can be expanded in stages of 3% depending on market conditions and international commodity price movements.

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Sebi has also changed the methodology for determining ETF base prices. Instead of using the T-2 NAV, exchanges will use the previous day’s closing price, calculated as the volume-weighted average price during the last 30 minutes of trading. If there is no trade during that period, the last traded price will be used. In the absence of any trading, the latest available NAV will serve as the base price.
The regulator said stock exchanges and mutual funds should work towards using the previous day’s closing NAV as the base price from April 1, 2027.In another key change, Sebi has mandated a pre-open call auction session for gold and silver ETFs to improve price discovery, given that the underlying commodities trade continuously across international markets while domestic ETFs trade only during Indian market hours.

The regulator said the changes were based on recommendations from stock exchanges, the Secondary Market Advisory Committee and feedback received during public consultation.

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There are lots of reasons people bought SpaceX’s SPCX 19.22%increase; up pointing triangle $1.8 trillion IPO, including faith in Elon Musk, hopes for the first-day pop and, perhaps, a belief that it will one day profit from colonizing Mars. One idea that’s popular even with those who think the stock is wildly overvalued is that early entry into the Nasdaq-100 and several other large indexes is virtually a guarantee of free money.

The trade works like this: When SpaceX joins an index, funds tracking the index have to buy no matter the price. So if you buy in advance, you can then sell to the index fund at a higher price when it joins, which will be on Friday for some of the indexes. The demand part of the logic is impeccable, and index arbitragers have long done exactly this, albeit with risks that make it far from guaranteed money.