New Delhi, Oct. 12 -- MUMBAI - Derivatives traders are awaiting clarity on how their contracts will be settled on expiry days as India's market regulator prepares changes to its closing-auction framework. SEBI Chairman Tuhin Kanta Pandey said on October 10 that the regulator hoped to issue guidelines in about a week, after examining feedback on the mechanism.

The review concerns the relationship between auction-derived closing prices and the prices used to settle derivative contracts. Pandey's announcement supplies an expected timetable, not a confirmed implementation date. That distinction matters for brokers and traders preparing for a change whose final formula has not been announced in the reporting reviewed for this article. Pandey ...