Overview
- SEBI chairman Tuhin Kanta Pandey said on Thursday that the Closing Auction Session will remain in place while the regulator studies adjustments to how derivative closing prices are set.
- Regulator officials plan to publish proposals for public consultation that target the expiry-day settlement methodology and may include changes to the time interval used to compute reference prices.
- Markets experienced abrupt minute-by-minute moves on expiry days, with the Sensex jumping roughly 1,186 points in two minutes before settling lower, a pattern SEBI links to thin liquidity during CAS windows.
- SEBI cited MSCI’s confirmation that its August 31 index rebalancing completed without operational problems as evidence that CAS can function as market liquidity builds.
- Separately, SEBI is pushing technology reforms by piloting tokenised corporate bonds under Demat 2.0 and adopting international AI supervisory toolkits to strengthen near-real-time market oversight.