SEBI Reviews Derivatives Settlement After Auction Issues
· Business · LiveMint, Economic Times, Moneycontrol
The Securities and Exchange Board of India (SEBI) is reviewing the methodology for determining derivative settlement prices following market volatility during the new closing auction session (CAS). Industry participants reported that the auction, introduced on 3 August, caused unpredictable price swings and market uncertainty. On Thursday, the BSE index dropped 2,100 points during the auction session before recovering to close 417 points lower. SEBI plans to issue a consultation paper within a week to propose changes after gathering feedback from brokers, mutual funds, and foreign portfolio investors.
Why it matters
The review addresses concerns from market participants regarding price stability and transparency during expiry days in the Indian stock market.
Read the original report — LiveMint
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