The Securities and Exchange Board of India will release its definitive guidelines on the Closing Auction Session mechanism and derivative settlement prices within a week, chairman Tuhin Kanta Pandey announced on Saturday.
Speaking in Mumbai at an event organised by the Bombay Stock Exchange Brokers' Forum, Pandey stated that the regulatory body is actively reviewing stakeholder feedback submitted on a recent consultation paper addressing expiry-day price volatility.
The consultation framework, which invited public inputs until October 3, drew approximately 20,000 responses from market participants and investors. The regulatory review focuses heavily on ironing out pricing concerns for index and stock derivatives during expiry sessions.
Alongside the impending auction guidelines, the market watchdog is advancing broader structural changes aimed at lowering compliance burdens and easing operational procedures. These initiatives include simplifying depository participant rules, enhancing technological resilience, and streamlining market access for foreign investors.
Pandey also highlighted plans to introduce a graded compliance architecture tailored to broker categories. Under this proposed approach, regulatory requirements would scale according to an entity's business volume, client exposure, and technology dependence rather than enforcing a uniform standard.
Furthermore, the regulator intends to integrate corporate actions such as tender offers, share buybacks, and offers for sale into the interoperability framework by the end of November. These measures are designed to harmonize parallel clearing systems and strengthen overall market efficiency.
