Market regulator Securities and Exchange Board of India (SEBI) has called a meeting of its Secondary Market Advisory Committee (SMAC) on Thursday to discuss feedback on the closing auction session (CAS) framework, multiple sources familiar with the matter told Moneycontrol.
The meeting has a single-point agenda of discussing the feedback received on SEBI's consultation paper on CAS, the sources said. The regulator has not shared a detailed agenda, leaving the outcome of the deliberations open.
“SEBI has not shared the exact agenda but consultation paper only. Seems the regulator does not want to reveal its mind and prefer the policy based on public and stakeholders’ inputs,” a source said.
Market participants have largely favoured retaining the existing volume-weighted average price (VWAP) methodology for calculating derivatives settlement prices, rather than immediately moving to a blended methodology that incorporates prices discovered during the closing auction session, the sources said.
SEBI is expected to take a final call after considering the feedback and discussions at Thursday's meeting. The meeting assumes significance as the regulator is weighing whether to retain the existing mechanism for an interim period or proceed with the proposed changes.