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Informist, Thursday, Sept. 24, 2026

 

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--SEBI chair: Indicative prices in closing auction are not prices to trade
--SEBI chair: Closing auction paper is to adjust to realities of our mkt
--SEBI chair: Watchful of risk management in margin trading facility
--SEBI chair: After deadline, will act fast on closing auction paper feedback
--SEBI chair: Received over 3,500 comments already on closing auction paper

 

MUMBAI – The Securities and Exchange Board of India has received over 3,500 comments already on the consultation paper on closing auction session framework for the cash market and the settlement price methodology for equity derivatives trading, Chairman Tuhin Kanta Pandey said Thursday at a post-board meeting press conference. The SEBI chairman said the market regulator is keen on quickly processing and acting on the feedback after the Oct. 3 deadline for receiving public comments on the consultation paper is over.

 

Pandey said the equity derivatives market participants have had years of practice in operating at the trade-based volume weighted average price of the last 30 minutes of the cash market's continuous trading session regime, and are finding it difficult to adopt the closing auction mechanism where it is orders that are getting pooled. There is a tendency, therefore, to not understand that the indicative prices disclosed during the closing auction sessions are not the prices to trade, he said.

 

The SEBI chairman advised equity derivatives traders to start closing their open positions in equity derivatives on expiry days much before the end of trading hours and not wait till the "fag end." However, he acknowledged that every market has its own peculiarities and as the market regulator for the Indian market with its own set of peculiarities and realities SEBI must also adjust "a little bit." This was the rationale behind SEBI's consultation paper, he said.

 

To a question on whether the rising margin trading facility book size of the brokers for leverage cash market trading was a cause for concern, Pandey said the market regulator was watchful of the risk management measures being taken by the market participants.  End

 

Reported by Rajesh Gajra

Edited by Deepshikha Bhardwaj

 

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