Economy
SEBI Proposes Settlement Changes Following Closing Auction Volatility
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THE BRIEF
1
The Securities and Exchange Board of India proposed revamping derivatives expiry settlement methodologies to address abrupt price swings caused by the month-old closing auction session system.
2
The regulator suggested calculating expiry prices using trades from the last 30 minutes of continuous trading and 10 minutes of the closing auction session, or alternatively reverting temporarily to the previous volume-weighted average price model.
3
SEBI has invited public comments on seven proposals, including adjustments to market timings and order cancellations, until October 3.