# Sebi adjusts closing auctions to stabilize markets

> Sebi shifts from closing auctions to continuous trading to prevent volatility in Indian derivatives markets.
- Title: Sebi adjusts closing auctions to stabilize markets | Shortify
- Summary: Sebi shifts from closing auctions to continuous trading to prevent volatility in Indian derivatives markets. Sebi will use continuous trading instead of…
- Keywords: sebi, closing auction, derivatives, sensex, bankex, nse, continuous trading, business, money, news, adjusts, closing
- Source: Financialexpress — https://financialexpress.com/opinion/making-auctions-work/4364333
- Author: The Financial Express
- Published: 2026-10-18T17:09:04+00:00
- Read time: 1 min
- Topics: sebi, closing auction, derivatives, sensex, bankex, nse, continuous trading, business, money, news
## 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.
## Key takeaway

Sebi will use continuous trading instead of closing auctions for derivative settlements to reduce price swings after turbulent launch.