Sebi to restore VWAP expiry-day derivatives settlement
In short
Sebi will bring back the volume-weighted average price method for expiry-day derivatives settlement from December 7. Traders had raised concerns about sharp price swings.
The change could help derivatives volumes recover if it makes expiry-day trading less jumpy. The reporting does not say how much trading may improve or what other rule changes may follow.
What the reporting says
Sebi will restore the volume-weighted average price method for expiry-day derivatives settlement from December 7, according to the reported summary. The change follows trader concerns over sharp price swings, but the source does not give the full rule text, any implementation details beyond the date, or measured effects on volumes yet. Analysts expect derivatives volumes may recover if trading becomes smoother.
Why it matters
Sebi will restore the volume-weighted average price method for expiry-day derivatives settlement from December 7 after trader concerns about sharp price swings. The immediate impact is on market structure for derivatives trading and potentially on volumes if the change reduces volatility around expiry. The source does not quantify the expected recovery or provide details of any broader regulatory package.