The Securities and Exchange Board of India (Sebi) received around 20,000 responses by the October 3 deadline on its consultation paper regarding the Closing Auction Session (CAS), market timings, and settlement methods for derivative contracts. This response count is significantly higher than the previously reported 3,500 comments and more than triple the 6,000 comments Sebi received earlier this year on a related consultation, according to livemint.com.
Sebi released the consultation paper on September 12, seeking feedback on seven proposals related to derivatives settlement methods, trading hours, and operational aspects of the CAS framework. The CAS was introduced for futures and options (F&O) stocks starting August 3, 2026. Sebi Chairman Tuhin Kanta Pandey stated that the proposals were clear and that the regulator would review the comments quickly to proceed with the next steps, as reported by livemint.com.
The large volume of feedback reflects strong market interest in refining the CAS framework and settlement methodologies amid evolving trading practices in the derivatives segment. The consultation follows Sebi's earlier efforts to curb excessive trading in the F&O segment through regulatory measures. The CAS mechanism aims to improve price discovery and liquidity during market closing, aligning with global best practices in derivatives trading, according to livemint.com.
Sebi’s next move will involve analyzing the 20,000 comments to finalize revisions to the CAS framework and settlement methods. The regulator’s decisions will impact trading operations and settlement processes for derivatives contracts across Indian exchanges, with implications for market participants and infrastructure providers, as detailed by livemint.com.