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SEBI Likely to Roll Back Closing Auction Rules as Capital Market Stocks Surge
M
Moneycontrol•06-10-2026, 12:24
SEBI Likely to Roll Back Closing Auction Rules as Capital Market Stocks Surge
- •BSE, NSE, and other capital market stocks rose up to 3 percent following reports that SEBI may pause using closing auctions for derivatives settlement.
- •SEBI is reportedly considering using the volume-weighted average price of the last 30 minutes of trading to determine derivative pricing for at least a year.
- •The regulator received around 20,000 suggestions from a consultation paper highlighting sharp swings in derivatives prices on expiry days under the current system.
- •Closing auctions will still be used to determine end-of-day prices for underlying stocks in the less liquid cash market.
- •Industry experts note that while the shift addresses manipulation concerns, it may create a pricing gap between cash and derivatives markets.
Key Questions Answered
BSE, NSE, and other capital market stocks rose up to 3% following reports that SEBI is likely to suspend using closing auctions to calculate derivatives settlement prices for at least a year.
Sources indicate that SEBI is likely to use the volume-weighted average price of the last 30 minutes of trading to determine derivative pricing instead of the closing auction session.
Yes, a closing auction will still be utilized to determine the end-of-day price for underlying stocks in the less liquid cash market.
