SEBI Proposes Changes To Closing Auction Session, Revises Derivatives Settlement Rules And Market Timings
The Securities and Exchange Board of India (SEBI) has suggested a series of changes to the closing auction session (CAS), including revised methods for settling derivatives contracts on expiry days, shorter transition periods and modifications to trading schedules. The proposed framework offers two alternatives for calculating expiry settlement prices for index and stock derivatives, Moneycontrol…
SEBI has proposed significant changes to the closing auction session (CAS) and derivatives settlement rules, aiming to revise trading timings and settlement methods. The regulator suggests two alternatives for calculating expiry settlement prices for index and stock derivatives, either using a blended volume-weighted average price (VWAP) from the final 30 minutes of regular trading and the 10-minute closing auction session, or solely from the last 30 minutes of continuous trading.
SEBI also proposes removing the indicative index value (IIV) from the auction, as it could mislead investors. Additionally, the regulator has proposed shorter transition periods and revised order rules, including reducing the gap between continuous trading and CAS to nearly one minute, and allowing orders placed beyond 1% from the reference price to be modified rather than cancelled.
These changes are part of SEBI's efforts to improve transparency and efficiency in the market, and the proposed modifications are open for public feedback until October 3, 2026.
Brief written by urgent.news from Free Press Journal's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
