Shares of Billionbrains Garage Ventures Ltd, the parent company of brokerage Groww, rose about 1.5% on Friday, continuing an upward trend for the second consecutive session. The gain followed the Securities and Exchange Board of India’s (SEBI) announcement to restore the final 30-minute continuous-session volume-weighted average price (VWAP) for derivatives settlement, effective December 7, 2026, according to livemint.com.
SEBI’s move changes the methodology for computing the settlement price of index derivatives on expiry day, shifting back to the VWAP during the Closing Auction Session (CAS). This adjustment aims to reduce expiry-day volatility, which was notably high under the previous CAS system. Jefferies India highlighted that brokers like Groww, whose orders remain below pre-CAS levels, stand to benefit from this change, as reported by livemint.com.
The new settlement price method is expected to stabilize the derivatives market on expiry days, potentially limiting excessive price swings. This regulatory update comes as premium turnover for exchanges has returned to pre-CAS levels, which may cap earnings upside for brokers. Jefferies recommended Groww as a buy, citing these regulatory and market factors as supportive of the brokerage’s performance, per livemint.com.
The SEBI rule change will take effect on December 7, 2026, marking a significant shift in derivatives settlement. Groww’s share performance in the days following this date will provide concrete insight into the impact of the regulatory adjustment, according to livemint.com.