SEBI to issue guidelines on CAS in a week: Chairman Pandey

SEBI chairman Tuhin Kanta Pandey has announced that the markets regulator is expected to issue guidelines on determining derivative settlement prices on expiry days within a week. This decision comes after SEBI received around 20,000 comments on the consultation paper regarding the Closing Auction Session (CAS) mechanism, its market timings, and the settlement methodology for derivative contracts.

The CAS mechanism aims to determine closing prices through an auction process, and the review of the CAS framework and settlement price methodology was initiated following the introduction of CAS in the equity cash segment. SEBI is also reviewing the Depositories and Participants Regulations to simplify rules and strengthen fraud prevention, and is exploring a graded compliance framework for brokers based on their scale, client exposure, and technology dependence.

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