India’s SEBI Seeks Major Changes to Unpopular Auction System
12 September 2026 Updated 12 September 2026Source: LiveMint 1 min read
Quick Summary
SEBI is looking to overhaul the closing auction mechanism, which has faced criticism for its recent performance. The regulator may revert to the earlier method of settling derivatives on expiry days after experiencing sharp price swings and liquidity worries.
Key Takeaways
- SEBI proposed sweeping changes to the closing auction system.
- The changes may include returning to the previous method for settling derivatives on expiry days.
- Sharp price swings have been observed with the current system.
- Liquidity concerns have emerged around the month‑old mechanism.
Why It Matters
Changes to the closing auction can affect how prices are set at the end of each trading day and may influence the settlement of derivative contracts that many retail investors hold.
Summary, takeaways and analysis above are written by CAPITA1's AI from the source report. For educational purposes only. Not investment advice.