Neutral impactSector
CAS fights teething troubles; will VWAP return on expiry days?
Mint 1 hr ago·7 Sept 2026, 12:00 am
The Securities and Exchange Board of India (SEBI) is reviewing the settlement mechanism for equity derivatives. The regulator is expected to release a consultation paper, seeking public feedback on whether weekly stock options should be settled using the old volume-based pricing system. This would differ from the current method, which uses a volume-weighted average price (VWAP) for weekly contracts and a combination of VWAP and auction prices for monthly contracts.
This potential shift is significant for market participants. If implemented, it could alter the pricing dynamics and volatility of weekly options, affecting hedging strategies and trading volumes. Investors should watch for the release of the consultation paper and the comments received from market participants, as this could lead to a structural change in how weekly options are priced and settled.
Key takeaways
- Category: Sector.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
