BSE, Groww, Angel One shares rally up to 8% after Sebi’s CAS circular. What did the regulator say?
Sebi plans to review the methodology for setting derivative settlement prices on expiry after market participants raised concerns over the new Closing Auction Session (CAS). The regulator will issue a consultation paper next week.
Shares of BSE, Groww, Angel One, Nuvama Wealth Management, and Motilal Oswal surged as much as 8% following the Securities and Exchange Board of India (Sebi) announcing a review plan for the newly introduced Closing Auction Session (CAS) methodology. Sebi's announcement came after receiving feedback from market participants regarding the volatility experienced due to the new CAS mechanism.
The regulator stated that a consultation paper with potential changes to the settlement price determination methodology for derivative contracts on expiry would be released in about a week. The review follows a decline in trading volumes in equity derivatives, attributed to the heightened volatility under CAS. The proposed changes may address the uncertainty on expiry days and reduce the impact of sudden swings in closing auction prices on option prices, potentially improving risk management for traders.
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Also reported by 1 other outlet
- Sebi's CAS review plan sends these shares soaring economictimes.indiatimes.com
