Sebi Chief: CAS stays, but derivatives settlement methods under review

Sebi Chairman Tuhin Kanta Pandey confirmed that the Closing Auction Session (CAS) mechanism will remain in place, dismissing calls for its removal. However, the regulator is examining how derivative settlement prices are calculated following CAS implementation to address trader concerns.

Traders have flagged steep Sensex swings on derivatives expiry days linked to the new mechanism. Global index provider MSCI noted its recent rebalancing proceeded smoothly under the framework. Sebi plans to issue a consultation paper detailing potential changes to settlement methodology aimed at reducing market volatility and shocks.