SEBI needs to hear passive investor
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Securities and Exchange Board of India issued a circular revising the Closing Auction Session.
- ✓From December 7, expiring index and stock derivatives will settle at the Volume Weighted Average Price.
- ✓SEBI listened to the derivatives market, but now many experts say the regulator needs to hear the passive investor.
Story at a Glance
- Category
- MARKET
- Reported By
- Business Line
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
The Securities and Exchange Board of India (SEBI) recently issued a circular revising the Closing Auction Session (CAS). This comes 10 weeks after the auction went live on August 3 and follows a consultation paper published in September. The circular’s message is simple: SEBI has listened to the derivatives market.
From December 7, expiring index and stock derivatives will settle at the Volume Weighted Average Price (VWAP) over the final 30 minutes of continuous trading, instead of the auction price.
Exchanges will publish the indicative index value live during that period, and futures and options will remain open until 3:45 p.m. For derivative players and Foreign Portfolio Investors (FPIs) bringing collateral into India to trade them, this means a steadier, more predictable settlement price.
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