BSE auction system linked to nearly 4,000% bank put move
A new closing auction system on the Bombay Stock Exchange (BSE) just shook up India's options market.
On Thursday, Aug. 27, 2026, a bank index put option jumped nearly 4,000% (from ₹1.70 to ₹68.55), then dropped to 0 in minutes.
The system was supposed to make end-of-day prices more accurate, but it's also brought wild price swings and fresh risks for traders.
Low BSE turnover amplified options volatility
Turns out, low trading activity on BSE is a big part of the problem. Its auction turnover was way below what you see at NSE.
Plus, while stocks pause for an auction close, options keep trading, which led to sharp moves: Sensex fell nearly 3% before bouncing back, and Bankex slid 3.3%.
As Ponmudi R, chief executive at local brokerage Enrich Money, put it, these swings felt like "a lottery ticket."