# Regulator U-Turn Boosts Indian Derivatives Market

> SEBI reverses derivative settlement rule to stabilize Indian equity markets after chaotic CAS system.
- Title: Regulator U-Turn Boosts Indian Derivatives Market | Shortify
- Summary: SEBI reverses derivative settlement rule to stabilize Indian equity markets after chaotic CAS system. SEBI's return to volume-weighted average prices for…
- Keywords: sebi, securities and exchange board of india, national stock exchange of india ltd, bse ltd, groww, billionbrains garage ventures ltd, cas mechanism, equity derivatives, money, business, Regulator, U-Turn
- Source: The Economic Times — https://economictimes.indiatimes.com/markets/stocks/news/u-turn-from-regulator-may-be-new-lifeline-to-indian-derivatives/articleshow/135038625.cms
- Author: Bloomberg
- Published: 2026-10-19T03:17:00+00:00
- Read time: 1 min
- Topics: sebi, securities and exchange board of india, national stock exchange of india ltd, bse ltd, groww, billionbrains garage ventures ltd, cas mechanism, equity derivatives, money, business
## Regulator U-Turn
SEBI reverses derivative settlement rule to stabilize Indian equity markets after chaotic CAS system.
## Market Reaction
Participants report greater clarity and predictability around expiry settlement prices to restore trader confidence.
## Trading Impact
Average daily turnover in equity derivatives fell to 18-month low on nse and one-third on bse before slight rebound in september.
## Brokerage View
Jefferies analysts expect the move to boost trading in options and futures while reducing volatility on expiration days.
## Trader Benefits
Proprietary trading desks may manage expiry risk more easily while arbitrageurs benefit from simpler hedging strategies.
## Expert Insight
Eshaan Lazarus says reverting to vwap system reduces price swings and brings back traders affected by unfair settlement prices.
## Key takeaway

SEBI's return to volume-weighted average prices for derivative settlements may restore trader confidence and boost equity derivatives trading in India.