Sebi to propose changes in derivatives settlement prices after closing auction runs into hurdles
Mint 2 hrs ago·3 Sept 2026, 4:01 pm
The Securities and Exchange Board of India (Sebi) is considering a major overhaul of the closing auction mechanism used to determine derivative settlement prices. This review was prompted by significant industry pushback, as frequent glitches and unpredictable price swings during these sessions have introduced unnecessary volatility for traders.
For investors, this move is critical because settlement prices directly impact the final valuation of trades. If the current system is unreliable, it can lead to unfair outcomes and increased risk for market participants. Sebi's intervention aims to restore stability and ensure that closing prices truly reflect market sentiment.
Investors should watch for the final regulatory circular, which will likely outline specific changes to the auction process. A smoother mechanism could reduce trading uncertainty, while any further delays might keep volatility elevated in the short term.
Excerpt from Mint
Sebi's review comes amid industry pushback that the auction sessions were creating unpredictable price swings and uncertainty in the market. The Securities and Exchange Board of India (Sebi) is set to review how settlement prices for derivative contracts are determined after industry feedback on the impact of the new…Read the original at Mint
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