Sebi overhauls closing auction rules for stock market traders
The Securities and Exchange Board of India has revised its Closing Auction Session (CAS) framework following extensive consultation with market participants. The regulator received over 20,000 comments from stakeholders before finalizing the updated rules.
Key changes include the introduction of a 10-minute closing auction window and restoration of the VWAP (Volume Weighted Average Price) method for determining F&O expiry settlement prices. The framework also clarifies procedures for order transfers, addressing concerns raised by traders and market intermediaries.
Most provisions of the revised CAS rules will come into effect on December 7, 2026, giving market participants time to adapt their systems and strategies. The overhaul aims to enhance market efficiency and provide greater clarity for traders operating in India's equity derivatives segment.
