SEBI to review derivative settlement methodology after CAS rollout

SEBI derivative settlement Closing Auction Session equity cash segment market volatility

The Securities and Exchange Board of India (SEBI) has announced a review of the methodology used to determine settlement prices for derivative contracts upon expiry. This decision follows the recent implementation of the Closing Auction Session (CAS) in the equity cash segment, which went into effect on August 3, 2026.

Under the current framework, the closing price determined through the CAS serves as the basis for derivative contract settlement prices. However, following the first month of CAS operations, SEBI received feedback from various market participants—including brokers, institutional investors, and traders—regarding volatility and its impact on futures and options (F&O) expiry payouts.

SEBI stated that it may propose changes to the existing settlement price framework and intends to release a consultation paper regarding the proposed changes within approximately one week.

Entities

Securities and Exchange Board of India

Sources

SEBI CAS, Derivative Rules: Retail Changes [indiaobservers.com]

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Why Are Indian Traders Losing Faith in the Stock Market’s Rules? [coinedition.com]

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SEBI to review derivative settlement price methodology after CAS rollout [newsable.asianetnews.com]

11 days ago

BSE, Angel One in Focus as SEBI Reviews F&O Settlement Methodology After CAS Rollout [tradebrains.in]

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Sebi to Review Settlement Price Methodology for Derivative Contracts in Light of CAS Rollout [www.deccanchronicle.com]

10 days ago

Sebi To Review Settlement Price Methodology for Derivative Contracts After CAS Rollout [www.news18.com]

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SEBI To Review Derivative Settlement Price Methodology After CAS Rollout [www.timesnownews.com]

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