Sebi Chairman Tuhin Kanta Pandey confirmed that the Closing Auction Session will remain in place while the regulator reviews derivative settlement price calculation methods following concerns about volatility on expiry days.
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Key takeaway
SEBI will keep the Closing Auction Session for now but is reviewing how derivatives settlement prices are calculated.
- Step 1 · The triggerSEBI confirms the Closing Auction Session remains while reviewing derivatives settlement price calculation methods
- Step 2 · Knock-onthe review may lead to changes in expiry-day settlement, altering volatility and hedging costs for market participants
- Step 3 · Knock-onindex providers like MSCI, with India-linked products, may see changes in index rebalancing and hedging flows as expiry-day volatility shifts
- Step 4 · Reaches youIndian SMEs exposed to expiry-day price swings face changes in operational certainty and hedging costs
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: IN:Economic Times
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