Negative impactOrders & Deals
SEBI should keep F&O expiry pricing out of closing auction: Rajesh Baheti
CNBC-TV18 1 hr ago·7 Sept 2026, 4:21 am
Rajesh Baheti of Crosseas Capital Services has urged market regulator SEBI to reconsider how futures and options (F&O) contracts are settled on expiry days. He suggests replacing the current closing auction method with a Volume Weighted Average Price (VWAP) mechanism to reduce extreme price swings.
This proposal comes amid recent volatility, including sharp moves in the Sensex and Bankex during BSE's monthly expiry. Baheti believes the current auction process can lead to erratic pricing and that a VWAP approach would provide a more stable reference point for settlement.
Investors should watch for any official response from SEBI regarding this suggestion. Changes to settlement rules could significantly impact trading strategies and risk management for F&O participants in the future.
Key takeaways
- Category: Orders & Deals.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
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