SEBI Receives 20,000 Responses on Closing Auction Consultation by Deadline
The Securities and Exchange Board of India has garnered significant feedback on its consultation paper regarding market timings and auction methodologies.
SEBI received 20,000 comments on its consultation paper by October 3, 2026.
This response rate is significantly higher than the previously reported 3,500 comments.
The consultation aims to refine the Closing Auction Session and associated market practices.
The Securities and Exchange Board of India (SEBI) has reported an impressive 20,000 comments received on its consultation paper concerning the Closing Auction Session (CAS) and market timings. This figure, confirmed as of 7 PM on October 3, 2026, far exceeds earlier media reports that indicated only 3,500 responses. The consultation paper was released on September 12, 2026, and aimed to gather insights from market participants regarding proposed changes to auction methodologies and settlement processes.
Historically, the CAS framework was introduced for futures and options (F&O) stocks on August 3, 2026. The recent surge in feedback reflects a growing interest among stakeholders in the regulatory review process. SEBI's previous consultation in 2024 attracted 6,000 comments, indicating that the current engagement is more than three times higher. The regulator is particularly focused on seven proposals that address derivatives settlement methodologies, market timings, and operational aspects of the CAS.
Among the proposals outlined in the consultation paper are two alternatives for expiry-day settlement of derivatives. The first option suggests a blended volume-weighted average price (VWAP) calculated from trades in the last 30 minutes of the Continuous Trading Session (CTS) and the 10-minute CAS period. The second option proposes to maintain a CTS-only VWAP methodology initially, with a potential shift to the blended approach after a year, contingent on a review.
The consultation paper also includes suggestions for altering market timing structures, modifying the dissemination of indicative index values during CAS, and imposing restrictions on the cancellation of certain limit orders. These changes aim to enhance the operational efficiency of the auction process and improve market stability. The significant increase in feedback submissions indicates a robust level of participation from market players in shaping the future of the CAS and its integration with the derivatives market.
Moving forward, SEBI is expected to analyze the feedback meticulously before finalizing any changes to the proposed methodologies. The regulator has also developed a software tool to assist in evaluating the responses, including identifying any repetitive submissions. This technological advancement underscores SEBI's commitment to a transparent and inclusive regulatory process.
