The Securities and Exchange Board of India (SEBI) has received around 20,000 responses to its consultation paper on the Closing Auction Session (CAS), market timings and settlement methods for derivative contracts. The number is significantly higher than the over 3,500 comments previously reported in some media outlets.
According to the latest data available with the regulator, SEBI had received around 20,000 comments by 7 pm on October 3, the deadline for submitting feedback on its consultation paper. The regulator shared the figures on X. The consultation paper was released on September 12.
The number of responses is more than three times the 6,000 comments received by SEBI in 2024 on a consultation paper proposing measures to curb excessive trading in the futures and options (F&O) segment.
The latest consultation paper follows SEBI’s initial experience with the Closing Auction Session (CAS) framework, introduced for F&O stocks from August 3, 2026. The regulator has invited feedback on seven proposals concerning derivatives settlement methods, market trading hours and certain operational aspects of the closing auction process.
“Today is the last date, and we will actually quickly look at all these comments and go ahead, because I think our proposals are quite clear,” Sebi Chairman Tuhin Kanta Pandey was quoted as saying by PTI.
CAS framework
In September, Sebi proposed revisions to the Closing Auction Session (CAS) framework and the methodology used to determine settlement prices for index and stock derivatives on expiry days. The review came after the introduction of CAS in the equity cash segment and concerns emerged over its potential impact on derivatives settlement prices.
The CAS mechanism aims to determine closing prices through an auction-based process. Sebi said the review seeks to address specific concerns while inviting feedback from market participants on various possible solutions.
Pandey said the consultation process was designed to tackle a particular issue while allowing market participants to suggest alternative approaches to resolving it.
Separately, discussing the development of the corporate bond derivatives market, Pandey said regulatory support, robust technical infrastructure and greater participation from market participants would be crucial to the segment’s growth.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
