Neutral impactCompany
Sebi may partly reverse derivative settlement rules after pushback
Business Standard 1 hr ago·5 Oct 2026, 11:37 am
The Securities and Exchange Board of India (Sebi) is considering a major tweak to its derivative settlement rules. The regulator is reportedly planning to use the last 30 minutes of trading to calculate the settlement price for derivatives, rather than the official closing price. This change is a direct response to feedback from market participants who argued that the previous rule was too rigid and often led to unfair price discovery.
This shift is significant for investors as it aims to better reflect the true market sentiment during the final minutes of trading. By incorporating the volume-weighted average price (VWAP) of the last 30 minutes, the new mechanism is expected to reduce volatility and prevent sharp price swings that can disadvantage traders.
Investors should watch for the final notification from Sebi. If implemented, this rule change will standardize the settlement process across the market, making it easier for retail investors to understand and manage their risk during the trading day.
Key takeaways
- Category: Company.
- 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.
