SEBI has received 20,000 comments so far on proposed changes related to the Closing Auction Session (CAS) mechanism, stock market trading hours and the settlement methodology for contracts in the futures and options (F&O) segment.
The Securities and Exchange Board of India (SEBI) has received a large number of responses to its proposals concerning trading and settlement arrangements in the Indian stock market. The proposals cover the Closing Auction Session (CAS), stock market trading hours and the settlement process for contracts in the F&O segment. SEBI is now reviewing the suggestions and moving towards finalising the framework. A new circular on the related rules may be issued thereafter.
SEBI said on October 3, 2026, that it had received 20,000 comments on its proposals by 7 pm. The regulator had sought views from market participants and the public on certain aspects of the CAS mechanism, market trading hours and the settlement process for F&O contracts.
The number of comments is significantly higher than the more than 3,500 suggestions earlier cited by SEBI Chairman Tuhin Kanta Pandey. The responses came from investors, market institutions and other stakeholders.
SEBI Chairman Tuhin Kanta Pandey has indicated that the regulator will expedite its review of the suggestions. He said all the comments received would be examined, after which the next steps would be initiated. Pandey made the remarks at an event organised by the Commodity and Capital Market Participants Association of India (CPAI).
According to Pandey, the proposed changes and the issues related to them have been set out clearly in the consultation paper. Therefore, the collection and analysis of suggestions is not expected to take a very long time. When asked whether a circular could be issued soon in the matter, he agreed that this was possible.
SEBI had proposed a review of the CAS mechanism in September. It had also sought market views on changes to the process for determining settlement prices on the expiry day of index and stock derivatives.
The CAS, or Closing Auction Session, is used to determine the final or closing price of shares through an auction process. After the CAS mechanism was introduced in the equity cash segment, issues were raised over its potential impact on the settlement prices of derivative contracts. SEBI has initiated the review in view of these issues.
According to the regulator, the objective of the review is to find solutions to certain specific issues. Market participants have been given an opportunity to suggest potential solutions and alternative approaches.
SEBI’s review also covers aspects related to stock market trading hours. Changes in trading hours could affect investors, brokers, exchanges and other institutions associated with the market. The regulator is therefore seeking broad feedback before taking a final decision.
After receiving 20,000 comments, the market is now awaiting SEBI’s final framework. The new circular may clarify the rules related to CAS, trading hours and the settlement mechanism for F&O contracts.
SEBI Chairman Tuhin Kanta Pandey also emphasised the development of the corporate bond derivatives market. He said that an effective regulatory framework, technological infrastructure and adequate market participation are necessary to strengthen the segment.
SEBI is taking several steps to promote exchange-based trading in the bond market. These include an electronic bidding platform for primary issuances, regulation of online bond platform operators and measures to strengthen the quotation mechanism for transactions in the secondary market. According to SEBI, bond indices and derivatives could play an important role in the future development of the market.
