SEBI panel to review CAS feedback as market favours existing VWAP settlement method
BusinessLine 1 hr ago·14 Oct 2026, 1:40 pm
The Securities and Exchange Board of India (SEBI) has announced a review of the Customer Complaints and Audit (CC&A) system (CAS) feedback, specifically focusing on the valuation of warrants and derivatives. This comes after market participants strongly expressed a preference for retaining the existing Weighted Average Price (VWAP) method for at least another year. The regulator is now assessing whether to delay the proposed shift to a blended calculation method to ensure stability in the market.
This development is significant for retail investors as it addresses concerns about the potential volatility that a sudden change in settlement pricing could introduce. By favouring the status quo, the market is signalling a need for caution during a transition period. Investors should watch for the final SEBI circular, which will clarify the timeline and specific rules for the new pricing mechanism.
Excerpt from BusinessLine
The Securities and Exchange Board of India (SEBI) has convened a meeting of its Secondary Market Advisory Committee (SMAC) on Thursday to discuss feedback on its proposed Closing Auction Session (CAS) framework, as the regulator considers changes to the recently introduced mechanism. The meeting will focus on…Read the original at BusinessLine
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- Category: Stocks.
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