A new SEBI circular reviewing the Closing Auction Session (CAS) framework sent broker stocks soaring on Friday. Angel One shares jumped nearly 8 percent while BSE rose 5 percent as investors cheered the regulator’s move to propose changes in derivative settlement pricing. SEBI said it will issue a consultation paper within a week to address industry concerns over F&O contract settlement.
Broker Stocks Rally on SEBI Announcement
Angel One shares climbed about 8 percent on the NSE during Friday’s trading session. BSE shares surged 5 percent while Billionbrains Garage Ventures, the parent company of Groww, rose 3 percent. Motilal Oswal Financial Services and Nuvama Wealth Management also saw strong demand from investors on the Janmashtami trading day.
SEBI to Review F&O Settlement Pricing
SEBI stated it will review how settlement prices are determined for Futures and Options contracts after one month of operating the CAS framework. The regulator launched the Closing Auction Session in the equity cash segment on August 3. This system determines closing prices by matching buy and sell orders in the last 15 minutes of the trading day.
Consultation Paper Expected in a Week
The market regulator said it may propose changes to the way derivative contract settlement prices are calculated. A consultation paper will be released in about a week to gather stakeholder feedback. SEBI has been working with stock exchanges, brokers, software vendors, mutual funds and industry associations to ensure smooth implementation.
SEBI Chairman Confirms No Immediate Changes
SEBI chairman Tuhin Kanta Pandey had said in August that the regulator does not see any immediate changes to the CAS system. He stated that participation will increase and all brokers will make it available on their apps. The CAS framework aims to address operational challenges faced during the initial rollout phase.
Market Ends Higher on Janmashtami
The broader market also closed in the green with the Sensex rising 362 points on the last trading day of the week. The positive sentiment was driven by the SEBI circular and strong buying interest across banking and financial services stocks. Analysts expect the consultation paper to bring more clarity to derivative market participants.
