SEBI is proposing changes to how derivative contracts are settled on expiry day, and market experts are backing the overhaul. The proposals aim to reduce volatility and improve transparency in the settlement process, which currently relies on the securities’ closing price determined by the official mechanism.
According to reporting, the changes are informed by feedback from market participants regarding the use of the CAS-determined closing price for settling derivatives at expiry. Outlets describe SEBI’s review as a response to concerns about how the existing settlement approach affects price movements and settlement outcomes. While details of the specific mechanics are not fully laid out in the available excerpts, the overall direction is consistent: SEBI considers adjustments to the settlement reference used at expiry.
Overall coverage emphasizes that the proposal is grounded in consultation with the market and is intended to make expiry-day pricing behavior more predictable for participants. The expert support highlighted across sources focuses on the potential for smoother settlement and clearer, more reliable settlement signals.
