SEBI to rework derivatives closing price mechanism amid CAS liquidity concerns
CNBC-TV18 1 hr ago·10 Sept 2026, 1:24 pm
The Securities and Exchange Board of India (SEBI) is revising its rules for setting the closing price of derivatives contracts on expiry days. This change comes after concerns were raised that the newly introduced Closing Auction Session (CAS) might not always provide a fair price, especially when market liquidity is thin.
This adjustment is significant for investors because the closing price determines the settlement value of options contracts. A flawed mechanism could lead to unfair settlements or volatility during the crucial expiry period. SEBI's intervention aims to ensure that the final price reflects genuine market sentiment and prevents manipulation.
Investors should monitor the new guidelines closely. The regulator is expected to issue a detailed circular shortly, which will clarify the revised process. Keeping an eye on market liquidity during expiry days will also be key to understanding how the new rules impact trading and settlement.
Key takeaways
- Category: Economy.
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