Sebi revises CAS rules, changes derivatives expiry settlement methodology
Economic Times 2 hrs ago·15 Oct 2026, 4:15 pm
The Securities and Exchange Board of India (Sebi) has approved a significant overhaul of the closing auction session for the equity cash market. This new process, scheduled to begin in December 2026, will replace the current single-window system with a phased approach. The revised session will run from 3:30 pm to 3:40 pm, featuring specific time blocks for order entry and cancellation. This change is designed to improve price discovery and give investors more control over their orders during the final trading minutes.
For investors, this update is a major shift in how the market determines the closing price for stocks. The new methodology for derivatives settlement will align with the revised cash market process, ensuring a smoother transition for all market participants. While the implementation is years away, it signals a move toward greater transparency and efficiency in how trades are finalized at the end of the trading day.
Market participants should monitor the detailed circulars as they are released to understand the exact mechanics of the new phases. The changes aim to reduce volatility and provide a fairer environment for closing trades, which could impact how investors place their final orders in the future.
Excerpt from Economic Times
Sebi has announced changes to the closing auction session for the equity cash market, which will begin in December 2026. The revised session will run from 3.30 pm to 3.40 pm, with specific phases for order entry. Moreover, the methodology for calculating settlement prices for derivatives contracts has been updated.…Read the original at Economic Times
Key takeaways
- Category: Orders & Deals.
- Flagged as a high-impact, market-moving story.
Why it matters
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