Sebi to release new closing auction rules after getting thousands of public comments

Market regulator Sebi will soon launch a new framework for the Closing Auction Session mechanism after receiving more than 3,500 public comments on its recent discussion paper.

Review Process

Sebi Chairman Tuhin Kanta Pandey stated on Saturday that the regulator will quickly review the responses since the initial proposals were already clearly defined. The consultation paper asked for public views on market timings, settlement methodology for derivative contracts, and potential changes to the auction process. Pandey spoke about the timeline at an event organised by the Commodity and Capital Market Participants Association of India, confirming that a final circular can be expected soon. The regulator originally rolled out the auction session in the equity cash segment before reviewing its effect on derivatives settlement prices.

Corporate Bonds and FPIs

Apart from auction rules, Sebi is working on regulatory measures for corporate bond derivatives to help the market grow. Pandey noted that building this segment needs proper technical setup, regulatory support, and active market participation. He also pointed out that Sebi is collaborating with the Reserve Bank of India to make it easier for foreign portfolio investors to access local markets, though actual investment choices still depend on global returns.

Context

The Securities and Exchange Board of India regularly uses public consultation papers to gather feedback from brokers, investors, and industry experts before making major policy changes. This helps the regulator balance market stability with ease of trading across both equity and debt segments.