Sebi proposes new CAS framework, two options for expiry-day settlement
12 September 2026 Updated 12 September 2026Source: Economic Times 1 min read
Quick Summary
The Securities and Exchange Board of India (SEBI) has proposed updates to the Closing Auction Session (CAS) framework. These changes primarily focus on the process for derivatives settlement on expiry days, with two alternative methods for determining the settlement price being considered.
Key Takeaways
- SEBI proposes a new CAS framework.
- Two options for expiry-day derivatives settlement.
- Option 1: Blended VWAP approach after one year.
- Option 2: Current CTS VWAP process for the present.
Why It Matters
Changes to derivatives settlement mechanisms can influence how contracts are valued and settled, potentially affecting market transparency and fairness for all participants, including retail investors.
Summary, takeaways and analysis above are written by CAPITA1's AI from the source report. For educational purposes only. Not investment advice.