SEBI reviewing derivatives settlement price and position limits
Why in the news
On 3 October 2026, SEBI Chairman Tuhin Kanta Pandey listed several market-structure reforms under review while addressing a capital and commodity market convention in New Delhi.
Key facts
- Event: 12th International Convention of the Commodity and Capital Market Participants Association of India (CPAI), New Delhi.
- Settlement price: SEBI is studying how derivatives should be settled on expiry days now that the Closing Auction Session (CAS) has been introduced.
- CAS relies on a call-auction mechanism to discover the closing price.
- Position limits: limits for non-agricultural commodity contracts are being examined to improve liquidity without diluting risk controls.
- Cash market: work is under way to improve liquidity and strengthen securities lending and borrowing.
- Pandey said efficient hedging and arbitrage help price discovery and link cash and derivatives markets more closely.
About the message
Pandey said India needs capital markets that can mobilise capital, manage risk and build investor confidence. He added that SEBI wants a market structure in which households can invest with confidence and businesses can raise money for growth.
Exam angle
- The current SEBI Chairman is Tuhin Kanta Pandey.
- The Closing Auction Session uses a call auction for closing-price discovery.
- Position limits under review apply to non-agricultural commodity contracts.