SEBI may move derivatives settlement to 30 minutes VWAP system
Business
SEBI is likely to change its derivatives settlement process after wild price swings on expiration days.
Starting at the end of October, SEBI may stop using the closing auction for derivatives settlement for at least a year. Instead, settlements will use a volume-weighted average price of the last 30 minutes of trading, making things a bit steadier.
For less-traded stocks, the old auction system sticks around.
SEBI received 20,000 suggestions
Last month's closing auction session made prices more jumpy.
After receiving 20,000 suggestions, Sebi is likely to try something new, bringing India closer to how global markets handle these trades.