SEBI may partly reverse closing auction rules after sharp derivatives price swings: Report
AI Summary
The reversal of SEBI's closing auction mechanism for derivatives pricing indicates a significant shift towards more stable and predictable trading conditions, which could enhance investor confidence. By adopting a volume-weighted average price approach, the regulator aims to mitigate the volatility seen on expiry days, potentially benefiting both retail and institutional investors. This move aligns Indian markets more closely with global practices, which may attract foreign investment and improve overall market efficiency.
MUMBAI, Oct 5 (Reuters) - India's markets regulator will partly reverse plans to overhaul the mechanism used to determine the closing prices of key stocks and derivative contracts linked to them, two sources with direct knowledge of the matter said.
The Securities and Exchange Board of India last month introduced a new mechanism called the closing auction session, or CAS, for stocks that have futures and options contracts linked to them.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 05 October 2026.
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