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Sebi to address expiry-day derivatives settlement concerns
Economic Times 1 hr ago·22 Sept 2026, 11:28 pm
The Securities and Exchange Board of India (Sebi) is reviewing the rules for settling derivative trades on the final trading day. Currently, the regulator is considering two main options to address concerns about how settlement prices are determined. One proposal involves using a blended Volume Weighted Average Price (VWAP) model, while the other suggests reverting to the previous VWAP method. Sebi is actively seeking public feedback on these alternatives to improve market structure.
This change is significant for investors because the settlement price directly impacts the final value of their trades. If the new rules are implemented, they could alter how prices are calculated, potentially affecting the outcome of large positions held until the expiry date. Market participants have expressed a preference for the older VWAP technique, and Sebi’s decision will likely depend on this feedback.
Investors should watch for the final guidelines from Sebi, which are expected to be released soon. The regulator’s move aims to bring more clarity and stability to the derivatives market. Until the rules are formalized, market participants are advised to stay updated on the latest announcements to understand how these changes might influence their trading strategies.
Excerpt from Economic Times
The Securities and Exchange Board of India is seeking to alleviate concerns related to derivative settlement prices. Among the proposed options are a blended VWAP model and a return to the previous VWAP method. Sebi is open to public feedback on these alternatives, which are intended to enhance market structure.…Read the original at Economic Times
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