Neutral impactEconomy
CAS stays, but derivatives settlement may change, says Sebi chief Tuhin Kanta Pandey after another 1,000-p
The Economic Times 2 hrs ago·10 Sept 2026, 11:33 am
Sebi Chief Tuhin Kanta Pandey has confirmed that the market regulator will not extend the temporary suspension of the Continuous Settlement System (CSS). This means the settlement cycle for equities will revert to the standard T+1 timeline. However, Pandey noted that the derivatives market may see a shift in settlement timelines. This follows a recent 1,000-point market crash that prompted the regulator to temporarily halt the CSS to prevent a liquidity crunch.
This news is significant for investors as it restores the standard settlement cycle, which is essential for market operations and risk management. The potential change in derivatives settlement could impact how traders manage their positions and margin requirements. Investors should monitor Sebi's official circulars for any specific details on the new settlement framework for derivatives.
Excerpt from The Economic Times
Sebi Chairman Tuhin Kanta Pandey stated the Closing Auction Session is here to stay. Traders express concerns about sharp expiry-day swings linked to this new mechanism. Global index provider MSCI acknowledged its recent rebalancing went well under the new framework. Sebi is reviewing derivative settlement price…Read the original at The Economic Times
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