GENERAL15 Sept 2026
Bourses and Brokers May Win From India’s Proposed Auction Revamp | Stock Market News
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restrictions on cancelling orders when prices move more than 1% during the auction, which may leave them stuck with outdated order prices.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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