You may believe it or not but on Friday 24 July, Axis Gold ETF and Axis Nifty ETF logged surprise spikes of 6553% and 741% due to a technical error on the NSE. Axis Nifty ETF closed at Rs.1151 against the previous close of Rs.136.80, while Axis Gold ETF closed at Rs.3483 against Rs.52.35 the previous day. But, how exactly did this happen?

The reason was the split in these ETFs. For example, the two ETFs were split in the ratio of 1:10 and 1:100, respectively and these ETFs began trading ex-split on Thursday. However, trades happened at erroneous pre-split prices. The lesson for ETF investors is to stick to large and liquid ETFs only. Smaller ETFs like Axis can see such issues and retail investors run the risk of seeing trades at unjustified prices.