From Financialexpress · The Financial Express · · 1m
Sebi adjusts closing auctions to stabilize markets
Sebi shifts from closing auctions to continuous trading to prevent volatility in Indian derivatives markets.
In brief
Sebi shifts from closing auctions to continuous trading to prevent volatility in Indian derivatives markets. Sebi will use continuous trading instead of closing auctions for derivative settlements to reduce price swings after turbulent launch. Originally reported by Financialexpress.
India's derivatives market growth
India's futures and options market grew with derivatives turnover reaching nearly rs 53 lakh crore in march.
Retail traders' losses
Sebi estimates 90% of retail traders lost a combined rs 91,000 crore in fy26.
Closing auction problems
The closing auction caused sensex to plunge 2000 points and bankex options to jump 14700% in one incident.
Sebi's pragmatic pivot
Sebi will use continuous trading for derivative settlements from december 7 instead of closing auctions.
Auction performance concerns
Average closing-auction turnover on nse has been around rs 2900 crore since introduction, below 1% of daily turnover.
Sebi's next steps
Sebi must strengthen surveillance, consult market makers, and publish evidence on auction performance to rebuild trust.
What it means
Sebi will use continuous trading instead of closing auctions for derivative settlements to reduce price swings after turbulent launch.
