Market regulator Securities and Exchange Board of India (SEBI) hopes to issue guidelines on changes to the closing auction session (CAS) in about a week, chairman Tuhin Kanta Pandey said on Saturday at an event organised by the BSE Brokers’ Forum (BBF) in Mumbai.
“We are currently examining the comments and hope to issue guidelines in about a week's time,” Pandey said, referring to a consultation paper issued to address concerns over the settlement price of derivatives on expiry days.
Outlining his vision for India's securities markets over the next decade, Pandey said SEBI would focus on deepening cash markets and improving price discovery. Wider participation, stronger securities borrowing and lending, and more efficient hedging and arbitrage could improve liquidity and market efficiency, he said.
“Following review of the closing auctions session, a consultation paper was put out to address concerns in respect of settlement price of derivatives on expiry date,” Pandey said.
SEBI is also reviewing regulations governing depositories and their participants to simplify rules and strengthen fraud prevention. For brokers, the regulator is exploring graded compliance requirements based on their scale, client exposure and dependence on technology.