Sebi likely to adopt blended pricing to smooth expiration days
Sebi is likely to adopt a blended pricing system for expiration days.
Instead of relying just on the final 10-minute auction (which has been causing wild price swings), the new method will mix prices from that auction with the volume-weighted average price (VWAP) of trades during the last 30 minutes of continuous trading.
The goal? Smoother, less stressful settlement days for everyone.
Sebi tightens expiration day derivative cancelations
This move kicks in for all stock and index derivatives on expiration days.
Sebi is also making it harder to cancel orders during the closing auction, hoping this will keep prices steady and get more people involved.
The move comes after traders complained about unpredictable price jumps since August's new auction system, so this update aims to make things fairer and a bit less chaotic.