SEBI's Tuhin Kanta Pandey announces closing auction rules for derivatives
Business
SEBI is gearing up to roll out new rules for how prices are settled during the closing auction session in the stock market, especially for derivatives.
Announced by SEBI Chairman Tuhin Kanta Pandey at a BSE Broker's Forum event this Saturday, the move aims to tackle those abrupt price swings we see on expiry days.
SEBI considers 30m plus 10m average
SEBI might switch to a blended average of trades from the last 30 minutes plus the final 10-minute auction, instead of just using one method.
They're also considering tweaks like pausing live index updates during this session and adjusting market timings.
Feedback on these ideas closed on October 3, and it's all about making settlement prices fairer and more reliable for everyone trading derivatives.