Sebi likely to adopt blended pricing to reduce derivatives expiry swings
In short
Sebi is likely to change how derivatives are priced in India to reduce big swings on expiry day. The idea was reviewed in a consultation paper in September after market participants complained about a liquidity squeeze during the auction.
This matters for traders and exchanges because expiry-day trading can become jumpy. The report does not say the plan is final or when it would start.
What the reporting says
Sebi is likely to adopt a blended pricing framework in India to curb expiry-day volatility in derivatives. The move follows a consultation paper in September and pushback from market participants who said the auction created a liquidity squeeze. The reporting does not state whether Sebi has already approved the change or when it would take effect.
Why it matters
Sebi is considering a blended pricing framework in India to reduce expiry-day volatility in derivatives. The reported push follows a September consultation paper and complaints from market participants about a liquidity squeeze during the auction. The source does not confirm final approval, implementation timing, or the exact market instruments that would be affected.