CAS U-turn from SEBI may be new lifeline to Indian derivatives
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓SEBI said late Thursday that derivative settlements on expiration days will use volume-weighted average prices.
- ✓This move reverses the closing auction session introduced on Aug.
- ✓“Participants going ahead will have greater clarity and predictability around expiry settlement prices,” said Dhiraj Relli.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Moneycontrol.com
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
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India’s battered equity-derivatives market may extend its nascent recovery after the regulator reverted to an earlier mechanism to settle prices, easing confusion that has weighed on trading activity.
That’s the initial takeaway from market players after the Securities and Exchange Board of India said late Thursday that derivative settlements on expiration days would use the volume-weighted average prices of underlying stocks during the final 30-minutes of continuous trading. The move reverses a key feature of the closing auction session introduced on Aug. 3, which led to wild swings in the reference price and plunged the market into chaos.
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