Sebi to issue norms on closing auction soon: Sebi chief

What happened: Sebi chairman Tuhin Kanta Pandey said the regulator will issue guidelines on derivatives settlement pricing during the Closing Auction Session in about a week, after reviewing comments on its consultation paper. Key numbers: CAS launched 3 August. Consultation feedback closed 3 October. Proposed CTS end 3:30pm, CAS 3:30pm to 3:40pm, derivatives until 3:45pm. Why it matters: CAS drew backlash over abrupt price swings and expiry-day uncertainty, prompting the review. Sebi proposed blended VWAP settlement or retaining VWAP, and may stop IIV dissemination during CAS.

Sebi chairman Tuhin Kanta Pandey said the regulator will issue guidelines on derivatives settlement pricing during the Closing Auction Session in about a week, after reviewing comments on its consultation paper.

CAS drew backlash over abrupt price swings and expiry-day uncertainty, prompting the review. Sebi proposed blended VWAP settlement or retaining VWAP, and may stop IIV dissemination during CAS.