SEBI Plans Consultation Paper on Closing Auction based Settlement Prices

Mumbai, September 3 – SEBI confirmed that it will issue a consultation paper within a week to assess the current practice of using the Closing Auction Session (CAS) price as the settlement benchmark for expiring derivative contracts. The move follows the activation of CAS for the equity cash segment on August 3, 2026, as mandated by the January 16, 2026 circular.

The regulator explained that the CAS framework was shaped after two rounds of public consultation—December 2024 and August 2025—and detailed discussions with stock exchanges, brokerage firms, institutional investors, and other market stakeholders.

Since the CAS launch, SEBI has kept an open line of communication with exchanges, brokerage houses, proprietary traders, software vendors, mutual funds, industry bodies, and foreign portfolio investors to resolve operational concerns.

Feedback collected through social media, news outlets and direct stakeholder outreach highlighted a predominant request: reconsider the policy that forces the derivative settlement price to be derived from the CAS closing price.