SEBI Eyes Changes to F&O Settlement Rules After CAS Feedback
What Happened
SEBI will review how F&O contracts are settled on expiry day after traders raised concerns that the new Closing Auction Session (CAS) can cause sharp last-minute price swings that affect settlement values. The regulator said it will release a consultation paper within a week proposing changes to the methodology.
Key Takeaways
The review could lead to changes in how F&O contracts are settled on expiry days, potentially reducing volatility and addressing trader concerns that CAS-driven price movements can distort derivative settlements.