India regulator plans changes to set expiry days' settlement prices for derivatives

According to Business Recorder, India's markets regulator put forward a proposal on Saturday that would combine two methods for fixing settlement prices on expiry days. Under the plan, both the closing auction session and a volume-weighted average price measure would feed into the figures for index and single-stock derivatives. The stated objective is to sharpen the performance of the closing auction system.

The Securities and Exchange Board of India also suggested adjustments to the closing auction process itself. Among the changes, the price band would be tightened and the post-closing auction window for derivatives would be cut from 10 minutes to five.

Because these are proposals rather than final rules, the report does not say when or whether they will take effect. The changes are therefore still under consideration, based on the report.