SEBI restores VWAP use for derivatives expiry settlement
In short
SEBI changed how derivatives expiry is handled after the new closing auction session was said to cause sharp price swings. The summary says the swings made it hard for traders to take part in futures and options.
This matters because expiry-day prices can affect many F&O trades. The reporting does not say exactly how the VWAP rule is being applied.
What the reporting says
SEBI restored VWAP use for derivatives expiry after the Closing Auction Session was said to have caused abrupt price swings on expiry day. The publisher-supplied summary says the volatility made it difficult for traders to participate in the futures and options segment. The reporting does not specify the exact settlement rule change, the date it takes effect, or any official numerical details.
Why it matters
The reported change affects derivatives expiry settlement in India’s futures and options market. The summary links the move to volatility on expiry day after the Closing Auction Session was introduced in August. That suggests SEBI is trying to reduce disruption for traders, but the reporting does not give the formal rule text, implementation timing or which contracts are covered.