GENERAL15 Sept 2026
Bourses and Brokers May Win From India’s Proposed Auction Revamp
The Securities and Exchange Board of India (SEBI) has proposed changes to the closing auction system it launched on August 3, after wild end-of-day price swings shook share and derivatives trading. It may now set closing prices using a mix of normal trading and the auction window. Exchanges and brokers could gain, while market makers face limits on cancelling orders. Feedback is open till October 3.
Key Statutory Highlights
- SEBI's closing auction system, launched on August 3, led to unexpected wild price moves at the end of trading in both equities and derivatives.
- SEBI has proposed fixing the settlement price using a blend of the 30-minute volume-weighted average price and a 10-minute auction window, or keeping the old method for a year.
- Market makers could face restrictions on cancelling orders when prices move more than 1% during the auction, which may leave them stuck with outdated order prices.
Actionable Advice for Taxpayers / Founders:If you trade, run a broking firm, or act as a market maker, read SEBI's discussion paper and send your feedback before October 3. It may also help to review your end-of-day order handling with your advisor, since the final rules are not yet decided.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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