Finance2h ago
Sebi proposes new CAS framework, two options for expiry-day settlement
AI EXECUTIVE SUMMARY
The Securities and Exchange Board of India has introduced proposals to update the Closing Auction Session, specifically targeting derivatives settlement on expiry days. Regulators outlined two potential approaches for determining settlement prices, which include a blended volume-weighted average price method and maintaining the existing framework.
WHY IT MATTERS
This regulatory proposal directly impacts how derivatives are settled on expiry days in India's financial markets, potentially changing pricing mechanisms for traders and exchanges.
The Securities and Exchange Board of India (SEBI) is set to implement crucial updates to the Closing Auction Session. A focus of these changes is on the process of derivatives settlement on expiry days. SEBI has laid out two alternatives for determining the derivatives settlement price: the first proposes a blended VWAP approach after one year, while the second keeps the current CTS VWAP process in place for the present.
This story was originally reported by Economic Times — Markets. As an automated real-time news aggregator, NewsToolBar provides multi-perspective indexing and AI summarization while directing full readership directly to primary publisher sources.
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