Sebi may change derivatives settlement to 30-minute VWAP
In short
India’s market regulator Sebi may change how derivatives are settled. Reports say it may use the last 30 minutes’ volume-weighted average price for at least a year, while keeping the closing auction for less-liquid stocks.
This matters to traders and stock markets because it could change prices on expiry days. The final rule and start date are not confirmed in the available reporting.
What the reporting says
India’s market regulator Sebi is likely to partly reverse derivative settlement rules after pushback, according to publisher summaries. The change would use the last 30 minutes’ volume-weighted average price for derivatives settlement, while keeping closing auctions for less-liquid cash stocks; some reports say the move could be in place for at least a year and may be implemented by month-end. What is still unknown is the final decision and timing.
Why it matters
Sebi is likely to alter how derivatives are settled after market pushback over sharp expiry-day price swings. The reported shift would move derivatives settlement to a 30-minute volume-weighted average price, while keeping the closing auction for less-liquid underlying stocks. The change could matter for traders, exchanges and Indian equities markets, but the final scope, duration and implementation date are not stated with certainty.