SEBI CAS guidelines in a week, says Chairman Tuhin Kanta Pandey
Synopsis
SEBI Chairman Tuhin Kanta Pandey has put a one-week deadline on releasing Closing Auction Session guidelines — a direct response to broker concerns over derivatives settlement prices on expiry days. With simultaneous moves on depository rules, broker compliance grading, and NRI digital onboarding, Saturday's address signals a concentrated regulatory push before the end of November 2026.
Key Takeaways
SEBI Chairman Tuhin Kanta Pandey announced CAS guidelines will be issued in approximately one week , as of 10 October 2026 .
The guidelines follow a consultation paper addressing concerns over derivatives settlement prices on expiry days .
SEBI is reviewing depository regulations to simplify rules and strengthen fraud prevention.
Graded compliance requirements for brokers based on scale, client exposure, and technology dependence are being explored.
Changes to the interoperability framework covering tender offers, buybacks, and offers for sale are targeted for end of November 2026 .
A digital onboarding consultation for NRIs and overseas residents has received more than 400 comments .
The Securities and Exchange Board of India (SEBI) is set to release guidelines on changes to the Closing Auction Session (CAS) within approximately one week, Chairman Tuhin Kanta Pandey announced on Saturday, 10 October 2026. The announcement came during an event organised by the BSE Brokers' Forum in Mumbai, where Pandey outlined a broad regulatory agenda spanning market structure reforms, depository rules, and investor education.
CAS Guidelines and Derivatives Settlement
'We are currently examining the comments and hope to issue guidelines in about a week's time,' Pandey said, referring to a consultation paper issued earlier to address concerns over the settlement price of derivatives on expiry days. The review of the Closing Auction Session was prompted by market participants raising questions about price discovery reliability at the close of trading on expiry dates.
Pandey emphasised that SEBI would focus on deepening cash markets and improving price discovery mechanisms. He noted that wider participation, stronger securities borrowing and lending, and more efficient hedging and arbitrage could collectively improve liquidity and overall market efficiency.
Depository and Broker Regulation Overhaul
The market regulator is also reviewing regulations governing depositories and their participants, with the twin objectives of simplifying existing rules and strengthening fraud prevention. For brokers specifically, SEBI is exploring graded compliance requirements based on their scale, client exposure, and dependence on technology — a move that could ease the burden on smaller intermediaries while maintaining oversight of larger, systemically significant players.
Interoperability and Clearing Costs
A separate concern flagged by Pandey involves transactions such as tender offers, buybacks, and offers for sale that currently fall outside the interoperability framework. 'These require parallel clearing arrangements, adding to costs and compliance requirements,' he said. Implementation of changes in this area is targeted by the end of November 2026.
Digital Onboarding and Investor Education
SEBI has also sought public comments on simplifying digital onboarding for persons resident outside India, including non-resident Indians (NRIs), without requiring physical presence. The consultation has received more than 400 comments, according to Pandey.
On investor awareness, Pandey said SEBI aims to take investor education to universities and colleges across the country, urging brokers and other intermediaries to play an active role in this effort. This comes amid growing concern over retail investor participation in complex derivatives products, which SEBI has been scrutinising over the past year.
Point of View
The devil will be in how 'scale' and 'technology dependence' are defined, and whether smaller brokers are genuinely relieved or simply re-categorised. The interoperability gap on buybacks and tender offers has been a known compliance cost for years; targeting a November 2026 fix is welcome but late. On investor education, the aspiration to reach universities is the right instinct — retail participation in derivatives has surged without commensurate financial literacy.
NationPress
10 Oct 2026
Frequently Asked Questions
What are SEBI's Closing Auction Session (CAS) guidelines about?
The CAS guidelines address concerns raised by market participants about the settlement price of derivatives on expiry days. SEBI issued a consultation paper on the subject and Chairman Tuhin Kanta Pandey said on 10 October 2026 that final guidelines are expected within approximately one week.
Why is SEBI reviewing depository regulations?
SEBI is reviewing rules governing depositories and their participants to simplify compliance requirements and strengthen fraud prevention mechanisms. The review is part of a broader regulatory modernisation drive announced by Chairman Pandey at the BSE Brokers' Forum event in Mumbai.
What is the graded compliance proposal for brokers?
SEBI is exploring a system where compliance requirements for brokers are calibrated based on their size, client exposure, and reliance on technology. The intent is to reduce the regulatory burden on smaller brokers while maintaining robust oversight of larger, more systemically significant intermediaries.
When will SEBI fix the interoperability gap on buybacks and tender offers?
SEBI has targeted the end of November 2026 for implementing changes that bring tender offers, buybacks, and offers for sale within the interoperability framework. Currently, these transactions require parallel clearing arrangements, which add to costs and compliance requirements.
How is SEBI simplifying access for NRI investors?
SEBI has sought public comments on enabling digital onboarding for non-resident Indians and other overseas residents without requiring physical presence. The consultation has already received more than 400 comments, according to Chairman Pandey.
