SEBI reverts to 30-minute VWAP settlement for derivatives December 7
Business
SEBI is switching back to its old way of settling derivatives, using the volume-weighted average price from the last 30 minutes of trading on expiration days.
This update, starting December 7, comes after traders raised concerns about wild price swings with the newer closing auction method introduced in August.
SEBI excludes auction trades, adjusts hours
SEBI listened to feedback from nearly 20,000 comments on a discussion paper, which said the closing auction was causing too much volatility.
Now, trades during that auction won't count toward settlement prices.
Trading hours are also getting a tweak: stock derivatives will trade until 3:45pm and expiring index contracts until 3:30pm changes meant to keep things smoother and more in line with how people actually trade.