Rajesh Baheti of Crosseas Capital Services has urged SEBI to adopt a volume-weighted average price method for settling F&O expiry contracts instead of the closing auction session, citing concerns over volatility and aggressive order cancellations.
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Key takeaway
Crosseas Capital Services urges SEBI to shift F&O expiry settlement from the closing auction to a VWAP-based method.
- Step 1 · The triggerCrosseas Capital Services urges SEBI to replace closing auction-based F&O expiry settlement with VWAP to address volatility and order cancellation issues.
- Step 2 · Knock-onIf SEBI acts, expiry-day price formation becomes less volatile, reducing operational risk and hedging unpredictability for trading firms and SMEs using F&O or ETF-linked products.
- Step 3 · Reaches youIndian SMEs that hedge with F&O or rely on ETF tracking see more stable expiry pricing, improving the reliability of their risk management and cost planning.
The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.
Source: CNBC TV18 (Markets)
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