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SEBI CAS Overhaul Set to Benefit Brokers Over Exchanges Says Jefferies
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News18•16-10-2026, 12:15
SEBI CAS Overhaul Set to Benefit Brokers Over Exchanges Says Jefferies
- •SEBI's updated Closing Auction Session framework aims to reduce expiry-day volatility and improve price discovery.
- •Jefferies reports that the changes will benefit brokers by offering greater scope for order volume recovery.
- •Stock exchanges are expected to see limited earnings upside as their premium turnover has already recovered.
- •New rules for index and stock derivatives settlement pricing take effect starting December 7, 2026.
- •Revised regulations for transitioning unexecuted limit and iceberg orders into CAS will apply from February 8, 2027.
Key Questions Answered
Under SEBI's circular, the settlement value will be based on the underlying index calculated using the volume-weighted average prices of constituent securities during the last 30 minutes of continuous trading in the equity cash segment.
The revised framework provides for a separate 10-minute closing auction session from 3:30 pm to 3:40 pm, with order entry closing randomly between 3:38 pm and 3:40 pm.
Most changes regarding the derivatives settlement and closing auction timings will take effect from December 7, 2026, while rules governing unexecuted limit and iceberg orders take effect from February 8, 2027.
