NSE, Groww, BSE, Angel One, MOFSL, Nuvama shares rally after SEBI CAS rollback report
SEBI may partially roll back its closing auction mechanism for derivatives settlement, Reuters reported. BSE, Angel One, NSE and other capital-market stocks gained.
- Oct 6, 2026,
- Updated Oct 6, 2026 9:44 AM IST
Shares of capital-market companies gained in early trade on Tuesday amid a buzz that India's markets regulator is likely to stop using closing auctions to calculate derivatives settlement prices for at least a year, in a partial reversal of the mechanism introduced in August for key stocks and derivative contracts, according to a Reuters report citing sources with direct knowledge of the matter.
If the change goes ahead, derivatives settlement prices would be based on the volume-weighted average price of the final 30 minutes of regular trading instead of a closing auction. The review follows concerns over sharp swings in derivatives prices on expiry days after SEBI introduced the closing auction session, or CAS, for stocks linked to futures and options contracts.
Shares of BSE Ltd surged nearly 3.55 per cent to Rs 3,292.30 on Tuesday, with its market capitalisation close to Rs 1.35 lakh crore. Angel One Ltd jumped close to 3.5 per cent to Rs 293.65 in early trade. Motilal Oswal Financial Services Ltd also added more than 3.1 per cent to Rs 1,038.95 at the opening.
Billionbrains Garage Ventures Ltd, the parent company of Groww, was up 2.25 per cent at Rs 191.25, with its market capitalisation close to Rs 1.2 lakh crore. Shares of the recently listed National Stock Exchange of India Ltd (NSE Ltd) gained more than 2.11 per cent to Rs 1,760 in early trade, with its market capitalisation close to Rs 4.35 lakh crore. Nuvama Wealth Management was up 1.85 per cent to Rs 1,855.
Under CAS, a short auction at the end of the trading day helps determine a stock's closing price. The mechanism is similar to practices in global markets, including the US and Hong Kong, but the regulator has been reviewing it after volatility in derivatives prices on expiry days.
According to the sources, the closing auction will continue to be used for underlying stocks in the less liquid cash market to determine the end-of-day price, while the volume-weighted average price of the last 30 minutes of trading will be used for derivatives pricing. The sources declined to be identified because they are not authorised to speak to the media.
In its review plans in September, the regulator also proposed stopping the publication of the indicative value of an index during the 10-minute CAS window and publishing only the indicative prices of individual stocks, saying the index value was still being determined.
The proposed shift would bring India closer to the approach used in the US and Europe, where derivatives settlement is often determined through dedicated pricing mechanisms, including volume-weighted average prices over set trading periods rather than a single closing auction. If implemented, the change would alter derivatives settlement while retaining the closing auction for less liquid cash-market stocks.
Shares of capital-market companies gained in early trade on Tuesday amid a buzz that India's markets regulator is likely to stop using closing auctions to calculate derivatives settlement prices for at least a year, in a partial reversal of the mechanism introduced in August for key stocks and derivative contracts, according to a Reuters report citing sources with direct knowledge of the matter.
If the change goes ahead, derivatives settlement prices would be based on the volume-weighted average price of the final 30 minutes of regular trading instead of a closing auction. The review follows concerns over sharp swings in derivatives prices on expiry days after SEBI introduced the closing auction session, or CAS, for stocks linked to futures and options contracts.
Shares of BSE Ltd surged nearly 3.55 per cent to Rs 3,292.30 on Tuesday, with its market capitalisation close to Rs 1.35 lakh crore. Angel One Ltd jumped close to 3.5 per cent to Rs 293.65 in early trade. Motilal Oswal Financial Services Ltd also added more than 3.1 per cent to Rs 1,038.95 at the opening.
Billionbrains Garage Ventures Ltd, the parent company of Groww, was up 2.25 per cent at Rs 191.25, with its market capitalisation close to Rs 1.2 lakh crore. Shares of the recently listed National Stock Exchange of India Ltd (NSE Ltd) gained more than 2.11 per cent to Rs 1,760 in early trade, with its market capitalisation close to Rs 4.35 lakh crore. Nuvama Wealth Management was up 1.85 per cent to Rs 1,855.
Under CAS, a short auction at the end of the trading day helps determine a stock's closing price. The mechanism is similar to practices in global markets, including the US and Hong Kong, but the regulator has been reviewing it after volatility in derivatives prices on expiry days.
According to the sources, the closing auction will continue to be used for underlying stocks in the less liquid cash market to determine the end-of-day price, while the volume-weighted average price of the last 30 minutes of trading will be used for derivatives pricing. The sources declined to be identified because they are not authorised to speak to the media.
In its review plans in September, the regulator also proposed stopping the publication of the indicative value of an index during the 10-minute CAS window and publishing only the indicative prices of individual stocks, saying the index value was still being determined.
The proposed shift would bring India closer to the approach used in the US and Europe, where derivatives settlement is often determined through dedicated pricing mechanisms, including volume-weighted average prices over set trading periods rather than a single closing auction. If implemented, the change would alter derivatives settlement while retaining the closing auction for less liquid cash-market stocks.