GENERAL7 Sept 2026
CAS fights teething troubles; will VWAP return on expiry days? | Stock Market News
The stock market regulator is likely to bring back the old volume-weighted average price (VWAP) method for settling derivatives on expiry days, partially reversing the closing auction session (CAS) introduced a month ago. This follows complaints about last-minute swings and gaps between Nifty and Sensex. Sebi may issue a consultation paper within a week. Traders should track it and share feedback.
Key Statutory Highlights
- Sebi has received market feedback on the settlement process and may issue a consultation paper within a week.
- Sebi may settle Nifty and Sensex weekly and monthly derivatives at a 15- or 30-minute VWAP, with stock futures using a combination of CAS and VWAP prices.
- The CAS system, introduced on 3 August, settled large derivatives contracts based on thinly traded auctions, creating divergence between Nifty and Sensex.
Actionable Advice for Taxpayers / Founders:If you trade stock or index derivatives, keep an eye out for Sebi's consultation paper in the coming week and submit your comments once it is open.
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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