Sebi to partly reverse derivative settlement rules after pushback: Report

Sebi, the Indian securities regulator, is reportedly planning to partially reverse its rules for derivative settlement. This decision comes after sharp price swings in derivatives on expiry days led to pushback from market participants. The change aims to reduce volatility and provide a more stable price for derivatives settlement. It will shift to a 30-minute volume-weighted average price for derivatives, while retaining the closing auction for less-liquid underlying stocks. This move may help calm market nerves and improve investor confidence.

Why it matters

Sebi is planning to change its closing auction mechanism for derivatives, which could reduce price swings on expiry days. This move may lead to increased stability and investor confidence in the Indian derivatives market.

Market impact

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