SEBI is set to partly walk back its closing auction session, sparing derivatives from the new mechanism for at least a year. Settlement pricing would revert to the 30-minute VWAP instead — a direct re

What happened: SEBI will partly reverse its new closing auction session (CAS) mechanism for stocks with futures and options contracts, two sources told Reuters. SEBI said it received 20,000 suggestions on the rules. Key numbers: 20,000 suggestions received; changes expected by the end of this month; derivatives Why it matters: The CAS led to sharp swings in derivatives prices on expiry days, prompting the review. The new approach would align India more closely with US and European markets, where settlement often uses volume-weighted average prices rather than a single closing auction.

SEBI will partly reverse its new closing auction session (CAS) mechanism for stocks with futures and options contracts, two sources told Reuters. SEBI said it received 20,000 suggestions on the rules.

The CAS led to sharp swings in derivatives prices on expiry days, prompting the review. The new approach would align India more closely with US and European markets, where settlement often uses volume-weighted average prices rather than a single closing auction.