derivative settlement rules India

India’s markets regulator plans to issue revised guidelines on the closing auction session within about a week, as it reviews concerns over how derivative settlement prices are determined on expiry days. SEBI Reviews Closing Auction Session Rules SEBI Chairman Tuhin Kanta Pandey said the regulator is examining feedback received on proposed changes to the closing auction session framework. The review follows concerns about the settlement price of derivatives on expiry days after the introduction of the auction mechanism. Pandey said SEBI’s broader goal is to deepen India’s cash markets, improve price discovery and increase liquidity through wider participation, stronger securities lending and more efficient hedging and arbitrage. Broker and Depository Rules Under Review SEBI is also reviewing regulations governing depositories and their participants, with a focus on simplifying compliance while strengthening fraud prevention. For brokers, the regulator is considering a graded compliance framework based on factors such as scale, client exposure and dependence on technology. Changes involving tender offers, buybacks and offers for sale are also being prepared, with implementation targeted by the end of November 2026. SEBI Plans Responsible AI Guidelines The regulator is additionally preparing guidelines for the use of artificial intelligence and machine learning in securities markets. The proposed framework is expected to include tiered requirements covering accountability, data controls, human oversight and emergency “kill switches”. SEBI is also working on easier digital onboarding for non-resident investors and stronger cybersecurity, business continuity and disaster-recovery standards across market infrastructure institutions.

SEBI to Issue New CAS Guidelines Within a Week

Latest News

EV Two-Wheeler Sales Cross 11 Lakh in FY2027

SEBI to Issue New CAS Guidelines Within a Week

French Police Face Scrutiny Over Student Protest Injuries

AP Chambers Backs GST Council Reforms

Supreme Court Sets Sunday Hearing on Delhi Detentions

Fresh Attack Hits Riyadh Airport, Several Wounded

Join Us