SEBI’s CAS proposals: Crosseas Capital backs earlier F&O settlement, MCQube seeks better liquidity

SEBI has proposed changes to the Commodity Ancillary Services (CAS) framework, aiming to improve market efficiency. Brokers and exchanges have reacted with mixed feedback, focusing on the proposed changes to Futures & Options (F&O) settlement cycles and the introduction of Volume Weighted Average Price (VWAP) for options. These proposals are designed to reduce settlement risks and ensure fair pricing.
For investors, these discussions highlight the ongoing effort to strengthen market infrastructure. While some experts, like Rajesh Baheti of Crosseas Capital, support earlier settlement to reduce credit risk, others, such as Venkatachalam Shunmugam of MCQube, argue that the current system is adequate. The debate underscores the balance between risk management and maintaining sufficient market liquidity.
Investors should watch how SEBI responds to these specific concerns. Any final rules could impact trading strategies and the operational costs for brokers, which may eventually be reflected in market dynamics. Staying updated on these regulatory developments is key for understanding the future direction of Indian derivatives markets.
Key takeaways
- Category: Corporate Action.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.















