Shares of Angel One, BSE Ltd., Motilal Oswal Financial Services, Anand Rathi Share & Stock Brokers and Multi Commodity Exchange of India rose on Friday after the Securities and Exchange Board of India said it would review the methodology used to determine settlement prices for derivative contracts following the rollout of the Closing Auction Session. This follows feedback from market participants during its first month of operation.
Angel One shares jumped as much as 7.81% intraday, while BSE gained as much as 4.66%. Motilal Oswal Financial Services rose up to 2.44%, Anand Rathi Share & Stock Brokers climbed 1.65% and MCX advanced as much as 1.13%, according to the data in the accompanying market snapshot.
SEBI may propose changes to the methodology for determining settlement prices of derivative contracts on expiry and plans to issue a consultation paper in about a week, the regulator said in a press release on Thursday.
The review comes after the CAS began in the equity cash segment on August 3. Under the framework, the closing price determined through the auction also serves as the basis for determining settlement prices for derivative contracts on expiry.
The move could change how expiry settlement prices are calculated for derivative contracts, although SEBI has not yet set out the proposed changes. The regulator said the consultation paper would provide the details.
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