The Securities and Exchange Board of India (SEBI) is set to release new guidelines regarding the determination of derivative settlement prices on expiry days within the next week. The announcement was made by SEBI Chairman Tuhin Kanta Pandey on Saturday, October 10, 2026, during an event hosted by the BSE Brokers' Forum. This decision follows a comprehensive review of the Closing Auction Session (CAS) mechanism, for which the regulator had previously invited public feedback until October 3.
Addressing the feedback process, Mr. Pandey noted that the regulator received approximately 20,000 comments on its consultation paper. The proposed changes aim to address industry concerns regarding how derivative settlement prices are calculated on expiry days, particularly following the introduction of CAS in the equity cash segment. The regulator is currently in the process of examining these submissions before finalizing the new framework. SEBI is targeting the end of November 2026 for the implementation of these changes, which are intended to enhance capital efficiency and reduce compliance costs.
Beyond derivative settlement, Mr. Pandey highlighted several other regulatory initiatives. SEBI is exploring a graded compliance framework for brokers, moving away from a 'one size fits all' approach by considering factors such as scale, technology dependence, and client exposure. Additionally, the regulator is looking into simplifying digital onboarding for investors residing outside India and is set to issue a circular on the matter shortly. The chairman also signaled upcoming guidelines for the responsible application of artificial intelligence and machine learning in the sector, emphasizing the need for human oversight, data controls, and robust accountability. These steps are part of a broader effort to strengthen governance, disaster recovery, and cybersecurity safeguards across market infrastructure institutions.
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