SEBI is reversing its own expiry-pricing rule ten weeks after bringing it in

Punjab, Oct. 16 -- SEBI is reversing itself on how derivatives expiry prices are set, restoring the 30-minute volume-weighted average price and putting the closing-auction formula on hold for at least a year - ten weeks after introducing it.

What changed, and what changed back

The Closing Auction Session began on 3 August 2026 as part of a reworked equity cash-market closing mechanism. The contested part was using CAS to determine derivatives settlement prices on expiry.

SEBI's Secondary Market Advisory Committee has recommended retaining the existing 30-minute VWAP on both exchanges and shelving the CAS-linked blended formula for at least a year. Reporting says a circular dated 15 October gives effect to this, following feedback on a 12...