India's SEBI Proposes Major Overhaul of Closing Auction System
Source Summary
India's Securities and Exchange Board of India (SEBI) has proposed significant changes to the closing auction system following concerns about sharp price swings and liquidity issues. The regulator is considering a return to the previous method for settling derivatives on expiry days, just one month after the new mechanism was introduced.
Why it matters
The proposed changes address operational problems in India's derivatives market that emerged within weeks of implementation, directly affecting market stability and participant confidence.
