Sebi to release new market rules soon after getting thousands of public comments

Market regulator Sebi will soon release a new framework on proposed changes to the Closing Auction Session mechanism after receiving more than 3,500 public comments. Chairman Tuhin Kanta Pandey stated that the regulator will quickly check the responses and move ahead without delay. Sebi had asked for public views on its proposal to review parts of the Closing Auction Session, trading timings, and the way derivative contracts are settled.

Market Changes

The review follows the launch of the Closing Auction Session in the equity cash segment and worries about how it affects derivatives settlement prices. Pandey spoke at an event held by the Commodity and Capital Market Participants Association of India. He noted that the consultation process aimed to fix a clear problem while letting market players offer different ways to solve it. Sebi is also working on rules to grow the corporate bond derivatives market by focusing on technical systems and trading platforms. Meanwhile, Sebi is talking with the Reserve Bank of India to make it easier for foreign portfolio investors to enter Indian markets.

Context

Market regulators like Sebi issue public consultation papers to gather feedback from traders, experts, and the public before making major rule changes. These rules help keep financial markets fair, safe, and transparent for everyone trading in them.