Global ETFs listed on Indian exchanges have begun trading at noticeable premiums as investors look for ways to access overseas markets. With the usual channels for international exposure still restricted, demand has shifted to a small set of ETFs whose supply is capped.

This combination is now distorting prices and affecting how investors should interpret returns.

Why these premiums are appearing?

The premiums trace back to the overseas investment limits that Indian mutual funds hit in 2022. Once fund houses reached SEBI’s $7 billion cap, they were barred from creating new units in global schemes.

The freeze also applied to global ETFs.

Under normal circumstances, ETF prices and their indicative NAV (iNAV) stay closely aligned.

Value Research explains that this alignment is maintaine

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