Archive · 4 Oct 2026
SEBI Receives 20,000 Comments on Proposed Closing Auction Changes
SEBI is reviewing rules for the auction that helps decide a market’s closing prices.
It also asked for views on trading hours and how some derivatives prices should be settled.
By the October 3 deadline, it had received 20,000 comments.
Earlier reports mentioned more than 3,500, and SEBI said that number came from a few days before the deadline.
Some market participants want to keep the current way of calculating settlement prices for a while.
Others have supported proposed operating changes they expect could reduce problems during the auction.
The Futures Industry Association raised concerns about how some proposals could affect hedging and transparency.
SEBI Chairman Tuhin Kanta Pandey said the regulator would review the comments quickly and move toward a framework.
He also discussed developing bond derivatives and making it easier for foreign investors to access Indian markets.
SEBI received 20,000 comments by the October 3 deadline on proposals covering the Closing Auction Session, market timings and derivatives settlement.
Earlier reports cited more than 3,500 comments; SEBI clarified that figure had been reported a few days earlier.
SEBI Chairman Tuhin Kanta Pandey said the regulator would examine the submissions quickly and indicated a framework or circular would follow soon.
The proposal offers a blended settlement-price method using continuous trading and the auction, or a return to the existing continuous-trading-only method for at least a year.
The Futures Industry Association backed the temporary existing method and raised concerns about transparency and some operational proposals; other participants supported some changes intended to reduce distortion and manipulation.
- Who
- The Securities and Exchange Board of India (SEBI), Chairman Tuhin Kanta Pandey, and market participants who submitted comments.
- What
- SEBI is reviewing proposed changes to the Closing Auction Session, market timings and derivatives settlement methodology.
- When
- The consultation deadline was October 3, 2026; a report published October 4 said 20,000 comments had been received.
- Where
- The proposals concern Indian securities markets.
- Why
- SEBI said the review addresses concerns about the Closing Auction Session and its potential effect on derivatives settlement prices.
Retain the current settlement method
Move to blended VWAP
Settlement methodology
Retain the current settlement method
The Futures Industry Association strongly backed retaining continuous-trading-only VWAP for at least a year. It said blended VWAP could be difficult to track and create settlement-price mismatches for hedgers, arbitrageurs and investors.
Move to blended VWAP
SEBI proposed blending VWAP from the final 30 minutes of continuous trading with the 10-minute Closing Auction Session as one possible settlement method.
Auction operations and transparency
Retain the current settlement method
The Futures Industry Association opposed stopping publication of the indicative index value during the auction and raised concerns about proposed order-cancellation restrictions and other operational changes.
Move to blended VWAP
Some market participants supported operational changes, expecting them to reduce distortion and manipulation during the auction.
- Comments received
- 20,000 by the October 3, 2026 deadline, according to a report published the following day.
- Earlier figure
- More than 3,500; SEBI said this figure had been reported a few days earlier.
- Consultation topics
- Closing Auction Session, market timings and settlement methodologies for derivative contracts.
- Settlement options
- Use a blended VWAP from the final 30 minutes of continuous trading and the 10-minute auction, or retain continuous-trading-only VWAP for at least a year.
- Futures Industry Association position
- It backed the second settlement option and said any eventual move to blended VWAP should depend on a defined liquidity trigger.
- Next step
- Pandey said SEBI would examine the comments quickly and indicated a framework or circular would follow soon; no specific date was given.
- Other topics discussed
- Corporate bond derivatives and work with the Reserve Bank of India to ease foreign portfolio investor access.
Sources
Sebi gets 3,500+ comments on Closing Auction Session rules: Circular likely soon, says Tuhin Kanta Pandey
Sebi receives 20,000 comments on proposed CAS changes; framework to follow soon
SEBI gets 20,000 comments on CAS review
