Markets regulator Securities and Exchange Board of India (SEBI) on Saturday (October 3) said that it received as many as 20,000 comments on its consultation paper seeking public views on proposed changes to the Closing Auction Session (CAS), market timings and the settlement methodology for derivative contracts.
The number of responses surged by the end of the consultation period, highlighting strong interest among market participants in the proposed changes.
Taking to X, SEBI said, “The number of comments received till 7:00 PM today, i.e. October 3, 2026, stands at 20,000.” The regulator had invited public comments on the proposals until October 3.
Certain sections of media has reported regarding number of comments received on the Consultation paper on “Review of certain aspects of the Closing Auction Session, Market Timings and Settlement Methodologies for Derivative Contracts” as 3500, which was a few days back. The…
The number of responses reached 20,000 by the end of the consultation period, higher than the over 3,500 comments that SEBI Chairman Tuhin Kanta Pandey had earlier said the regulator had received.
Speaking at an event organised by the Commodity & Capital Market Participants Association of India (CPAI), Pandey said SEBI would examine the responses quickly and proceed with the next steps.
“Today is the last date, and we will actually quickly look at all these comments and go ahead, because I think our proposals are quite clear,” news agency PTI quoted Pandey as saying.
Asked when the regulator could issue a final framework or circular on the CAS mechanism, Pandey indicated that it could happen soon.
“Yes, it will be,” he said when asked whether a circular could be expected shortly.
In September, SEBI had proposed changes to the CAS framework as well as the methodology used to determine settlement prices for index and stock derivatives on expiry days.
The review followed the introduction of the CAS in the equity cash segment and concerns raised over its potential impact on the settlement prices of derivative contracts.
The Closing Auction Session is designed to determine the closing price of securities through an auction-based process.
SEBI has said the proposed review is aimed at addressing specific issues emerging from the existing framework. The consultation paper also sought views from market participants on different possible approaches to resolving these concerns.
Pandey reportedly said the consultation process was structured to address a clearly identified problem while giving stakeholders an opportunity to suggest alternative solutions.
Separately, Pandey spoke about the development of the corporate bond derivatives market and said regulatory support, technological infrastructure and greater participation would be critical for the segment’s growth.
He said SEBI was working towards encouraging exchange-traded systems in the bond market.
The regulator has already introduced several measures, including an electronic bidding platform for primary bond issuances, regulation of online bond platform providers and strengthening of the request-for-quote mechanism for secondary-market transactions.
“Bond indices and derivatives and bond indices will be, I would think, at a major milestone going forward,” Pandey said.
On Foreign Portfolio Investor (FPI) flows into India, Pandey said SEBI’s role was to make it easier for overseas investors to enter and access the Indian market.
However, he noted that investment decisions ultimately depend on the returns and opportunities available across different countries.
Pandey said SEBI was working with the Reserve Bank of India (RBI) on measures aimed at further easing access for FPIs.
The regulator has already taken several steps in this direction, including allowing FPIs to participate in non-agricultural commodity derivatives.
Pandey said FPI holdings in India could rise or fall depending on investment opportunities across global markets.
“All what we can do at the regulatory stage is to listen to what the FPIs have to say, easing their onboarding, easier the access,” he said.