Silver ETFs Fall Up To 3%; SEBI Proposes Review Of Price Bands Amid Volatility

On February 16, exchange-traded funds (ETFs) made of gold and silver fell in trade as investors cashed in profits after recording profits in the prior session. Exchange data showed that a number of silver ETFs dropped over 2%, and gold ETFs were being traded at a marginal loss. The fall is through the proposal that the Securities and Exchange Board of India (SEBI) has put on the review of the price bands of ETFs that have experienced high volatility.

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Silver ETFs lead declines

At 12.45 pm, the Edelweiss Silver ETF had dropped by approximately 3%, whilst the Bandhan Silver ETF, Kotak Silver ETF, Aditya Birla Sun Life Silver ETF, ICICI Prudential Silver ETF, 360 ONE Silver ETF, SBI Silver ETF, Mirae Asset Silver ETF, and Nippon India Silver ETF (Silverbees) had dropped over 2% each.

Edelweiss Silver ETF was at 3:42 pm, trading down by 1.95%, 140.41 on the NSE, 1.95% (or 4.75) lower at 3:42 pm. The highest intraday price of the ETF was 239.99, and the lowest price was 233.65. The exchange data indicated that volume on the NSE was 6,73,108 units.

Gold ETFs Trade Mixed

Choice Gold ETF is one of the gold-based ETFs that fell approximately 2% in the session. Angel One Gold ETF, Motilal Oswal Gold ETF and Kotak Gold ETF were also trading in the red and with marginal losses on other gold ETFs in the green.

This is because the drop in gold and silver ETFs came after the metals experienced choppy prices, which witnessed an interesting U-turn at the beginning of 2026. Players in the market realised profits following gains realised in the last trading period.

SEBI Proposes Measures To Curb Volatility

SEBI has come up with a proposal of reviewing price bands of ETFs that have been very volatile in recent times.

The suggestion is supposed to curb soaring prices and maintain a smooth trade in the segment, as per regulatory discourses mentioned in the report.

The relocation is based on recent incidences of increased volatility in precious metal ETFs, especially on those days when there is a low volume of trading, as well as market holidays.

Precious Metals Witness Choppy Trade

According to one of the analysts quoted in the report, gold prices have become volatile following steep intraday fluctuations in early 2026, but have otherwise shown a constructive broad structure. Recent market holidays and reduced trading input were some of the factors that led to price changes in precious metals, which were translated to ETF performance.

According to the exchange data, the fall in the gold and silver ETFs on February 16 was caused by profit-taking and continuing volatility in the underlying metal prices.