Don't need board OK for soon-to-come circular on closing auction paper - SEBI
This story was originally published at 16:00 IST on 3 October 2026
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--SEBI chief:Don't need board OK for soon-to-come circular on closing auction
By Shakshi Jain and Pratiksha
NEW DELHI – The Securities and Exchange Board of India does not require board approval to release a circular on the Sept. 12 consultation paper on tweaks to closing auction session framework and the equity derivatives settlement price methodology, which can be expected soon, Chairman Tuhin Kanta Pandey told Informist on the sidelines of a conference hosted by the Commodity and Capital Market Participants Association of India Saturday. Saturday is the last day for receiving public comments on this consultation paper.
"We will actually quickly look at all these comments and go ahead because I think our proposals are quite clear and we will not have much time to compile those things and analyse those comments," Pandey said. Up to Sept. 24, SEBI had received over 3,500 responses to the consultation paper, as per the SEBI chairman's comments in a press conference following the board meeting on that day.
In its Sept. 12 consultation paper, SEBI had proposed a choice between fixing the settlement price of equity derivatives contracts as the volume weighted average price of the last 30 minutes of a continuous trading session in the cash market and fixing it as a blend of the volume weighted average price and the final equilibrium price of the closing auction session. The choice of having the volume weighted average price-based methodology was, however, applicable for a period of around one year, SEBI had said in the paper.
SEBI had, in the paper, also proposed to do away with the requirement of showing the indicative price for the index during the closing auction. However, the indicative price for stocks will continue to be shown. These and other proposals had come due to strong criticism of the closing auction session's extremely low liquidity and high volatility, and the spikes in derivatives prices during expiry since closing auction session was introduced on Aug. 3. End
Edited by Deepshikha Bhardwaj
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