SEBI set to revise derivatives settlement price methodology after CAS feedback; expected in about a week
SEBI is planning to revise its methodology for determining settlement prices for derivative contracts following feedback on the new Closing Auction Session. The regulator intends to consult with market participants before finalizing these changes.
Why it matters
Adjustments to derivative settlement mechanisms are critical for maintaining market stability and investor confidence in financial exchanges.
The Securities and Exchange Board of India (SEBI) is set to introduce changes to the methodology used to determine settlement prices for derivative contracts following the implementation of the newly introduced Closing Auction Session (CAS). The regulator is expected to announce the changes in about a week.
SEBI said it has engaged with market participants and other stakeholders after receiving feedback and suggestions on the CAS through multiple channels, including social media and other media platforms, according to its statement.
“Among the issues raised, a significant area of feedback relates to the determination of settlement prices of derivative contracts on expiry based on the closing price determined through CAS,” it said.
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