Neutral impactSector
SEBI panel backs existing VWAP settlement method as CAS faces scrutiny
BusinessLine 2 hrs ago·15 Oct 2026, 1:23 pm
A key regulatory panel has recommended maintaining the existing Volume Weighted Average Price (VWAP) calculation method for settling trades. This decision comes as the panel reviews the Current Account Settlement (CAS) system, which has faced scrutiny regarding its accuracy. The panel supports the current formula over an alternative method that uses closing auction prices, aiming to ensure fair pricing for investors.
This move is significant for the broader market as it signals a preference for stability over immediate changes to the settlement framework. By keeping the existing VWAP method, regulators aim to prevent volatility that could arise from switching to a blended calculation. This decision helps maintain confidence in the current trading and settlement infrastructure.
Investors should watch for the final implementation of these recommendations. The panel has also suggested revising trading hours and making changes to iceberg orders. These adjustments could impact how orders are placed and filled, potentially altering market dynamics in the future. Staying updated on these regulatory developments is crucial for understanding the evolving market structure.
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