Pandey sets out the next step
SEBI chairman Tuhin Kanta Pandey said on Saturday, October 10, that the regulator could issue guidelines on closing-auction settlement in about a week. Mint and Business Standard separately reported his remarks at a BSE Brokers’ Forum event in Mumbai.
The review focuses on how derivatives settlement prices are determined on expiry days. Business Standard reported that the consultation attracted more than 20,000 comments from traders and other market participants, which SEBI is examining before finalising its response.
Sources: Sebi to issue norms on closing auction soon: Sebi chief · Sebi to issue closing auction guidelines in a week: Tuhin Kanta Pandey
Settlement alternatives remain proposals
According to Mint, the Closing Auction Session began on August 3 for selected stocks traded in futures and options. Its report described concerns about price swings and expiry-day uncertainty that prompted a review of the settlement method.
One draft approach combines trades from the final 30 minutes of continuous trading with the final 10 minutes of the auction through a blended volume-weighted average price. Another would initially retain settlement based on the final 30 minutes of continuous trading, with a possible later transition. Mint said consultation feedback closed on October 3. These are proposed approaches; the announcement does not establish which option will be adopted.
Sources: Sebi to issue norms on closing auction soon: Sebi chief
Other regulatory work continues
Business Standard reported that SEBI is also preparing simpler digital onboarding for people resident outside India, after receiving more than 400 comments. Pandey also outlined work on a compliance framework that takes account of a broker’s size, customer exposure and reliance on technology.
The newspaper reported an end-November target for bringing tender offers, buybacks and offers for sale into the interoperability framework. Planned guidance on artificial intelligence and machine learning would address responsibility, data safeguards, emergency controls and human supervision. These measures were described as regulatory work in progress, rather than completed changes.
Sources: Sebi to issue closing auction guidelines in a week: Tuhin Kanta Pandey
Prepared with AI assistance from the linked reporting. Banner: AI-generated editorial imagery; not a photograph of the reported event.
