Neutral impactSector
SEBI to review CAS-based settlement price mechanism for derivatives
BusinessLine 1 hr ago·3 Sept 2026, 4:07 pm
The Securities and Exchange Board of India (SEBI) is planning to revise the method used to calculate settlement prices for derivatives. Currently, this price is derived from the Closing Average Settlement (CAS) of the underlying security. SEBI will now review this mechanism to ensure it remains robust and fair for market participants.
This change is significant for investors as it directly impacts the pricing of futures and options. A revised methodology could lead to more accurate and transparent pricing, reducing the risk of manipulation. It aims to bring more stability to the derivatives segment, which is a crucial part of the broader market ecosystem.
Market participants should watch for the consultation paper that SEBI is expected to release shortly. This document will outline the proposed changes and invite public feedback. Investors should review the new guidelines once they are finalized to understand how they might affect their trading strategies.
Excerpt from BusinessLine
The Securities and Exchange Board of India (SEBI) is going to review the methodology for determining settlement prices of derivative contracts on expiry, with a consultation paper on proposed changes expected in about a week. The move follows feedback from market participants on the Closing Auction Session (CAS)…Read the original at BusinessLine
Key takeaways
- Category: Sector.
- Assessed as a significant, market-relevant update.
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