SEBI revises closing auction session rules in a move that affects Indian exchanges and brokers
India's market regulator SEBI has changed the closing auction session framework, including how derivatives expiry prices are set. Most rules take effect on December 7, 2026.
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what happened
India's market regulator SEBI has issued a circular revising the Closing Auction Session framework that was introduced in January this year. According to cnbctv18.com, the regulator received more than 20,000 comments on its consultation paper before finalising the changes.
Under the new rules, index derivatives expiry prices will be based on the index calculated from the volume weighted average price of its constituents over the last 30 minutes of continuous trading, rather than on CAS closing prices. The same approach applies to stock derivatives on expiry day across all exchanges. Iceberg orders left unexecuted at the end of continuous trading will move into CAS as fully disclosed limit orders, with lower time priority than regular limit orders from that session. CAS itself will now run for ten minutes, from 3:30 to 3:40 PM.
why it matters
For shares of BSE, NSE, Angel One and Motilal Oswal Financial Services, the changes matter because they touch derivatives settlement and end-of-day trading mechanics. Most provisions take effect on December 7, 2026, while the iceberg order transition rules start on February 8, 2027.
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- BSE, NSE, Angel One shares will react to the new SEBI CAS rules — cnbctv18.com, 16 October 2026 at 00:53 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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