Neutral impactEconomy
SEBI to partly reverse derivative settlement rules after pushback, sources say
BusinessLine 1 hr ago·15 Oct 2026, 4:57 pm
The Securities and Exchange Board of India (SEBI) is reportedly revising its previous directive on derivative settlement rules. This change comes after significant feedback from market participants who found the initial proposal too restrictive. Instead of the earlier plan, SEBI is now moving toward a system that aligns more closely with international standards, such as those in the US and Europe.
For investors, this shift is a positive development as it aims to improve market liquidity and reduce settlement risks. By adopting a pricing mechanism similar to global markets, the new rules are expected to make trading in derivatives more efficient and predictable. This move should help in stabilizing the broader market environment.
Investors should monitor the final circular from SEBI, which is expected by the end of the month. Keeping an eye on how this change impacts trading volumes and price stability will be crucial for understanding the market's next steps.
Excerpt from BusinessLine
India’s markets regulator, Securities and Exchange Board of India (SEBI), is likely to stop using closing auctions to calculate derivatives settlement prices for at least a year, two sources with direct knowledge of the matter said, in a partial reversal of new mechanisms it has introduced for setting the closing…Read the original at BusinessLine
Key takeaways
- Category: Economy.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. Use the price and stock snapshot to gauge how the market is responding.
