SEBI Reviews Derivatives Expiry Settlement After CAS Rollout

New Delhi, October 3 – SEBI chairman Tuhin Kanti Pandey told participants at the 12th International Convention of the Commodity and Capital Market Participants Association of India that the regulator is currently reviewing concerns linked to the derivatives expiry settlement framework. The review follows the introduction of the Closing Auction Session (CAS) mechanism, which aims to improve price discovery by matching buy and sell orders at a single equilibrium price rather than relying solely on volume‑weighted average prices. Pandey emphasized that a robust cash market, deeper liquidity, and a strong securities‑lending system are essential for effective hedging, arbitrage and smoother coordination between cash and derivatives segments.