GENERAL3 Sept 2026
Sebi to propose changes in derivatives settlement prices after closing auction runs into hurdles | Stock Market News
SEBI is reviewing how derivative settlement prices are set after its new closing auction session caused unpredictable swings on expiry days. The auction price also decides derivative settlements, so traders face uncertainty. On Thursday, the BSE index plunged about 2,100 points in five minutes, then recovered to close 417 lower. A consultation paper is expected in about a week.
Key Statutory Highlights
- SEBI introduced the closing auction session in the equity cash segment on 3 August.
- The closing price from the auction session is used as the basis for settlement prices of derivative contracts on expiry.
- SEBI expects to issue a consultation paper in about a week proposing changes to the settlement price methodology.
Actionable Advice for Taxpayers / Founders:If you trade derivatives, keep an eye out for SEBI's consultation paper and consider sharing your experience with the closing auction before rules change.
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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