NSE warns investors over rising premiums on overseas ETFs

The National Stock Exchange has warned investors about growing risks tied to overseas exchange-traded funds trading at steep premiums. Several international ETFs have seen their prices climb sharply while their underlying net asset values remain unchanged, creating a widening gap.

The disparity stems largely from supply limitations and new regulatory measures affecting ETF unit issuance. The NSE advised investors to exercise caution, noting that buying at inflated prices could lead to sudden corrections as demand normalizes.