SEBI proposes changes to derivatives settlement, closing auction timings; seeks public comments
BusinessLine 1 hr ago·12 Sept 2026, 7:52 am
The Securities and Exchange Board of India (SEBI) has proposed new rules for the derivatives market to improve how trades are settled. The regulator is looking to change the timing of the closing auction, which is the final price-setting process for stocks and futures. SEBI also wants to introduce a new method for determining settlement prices, aiming to make the process more accurate and efficient for all market participants.
This move is significant for investors as it addresses concerns regarding price discovery and operational stability in the derivatives segment. By refining these processes, SEBI hopes to reduce volatility and ensure fairer valuations for trades. The changes are currently in the consultation phase, meaning SEBI is inviting public feedback before finalizing the regulations.
Investors should watch for the final notification from SEBI, which will outline the exact implementation dates. While the proposed changes aim to streamline market operations, the final rules could have a short-term impact on trading volumes and settlement timings. Staying updated on these regulatory shifts will be key for managing risk in the derivatives space.
Excerpt from BusinessLine
The Securities and Exchange Board of India (SEBI) has proposed changes to the settlement methodology for derivatives contracts, market timings and certain operational aspects of the Closing Auction Session (CAS). The proposals come after market participants raised concerns and observations emerged during the initial…Read the original at BusinessLine
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