The Securities and Exchange Board of India (SEBI) expects to issue SEBI CAS guidelines within a week after reviewing stakeholder comments, Chairman Tuhin Kanta Pandey said on Saturday. The regulator is also examining broker compliance requirements, depository regulations, clearing arrangements for certain transactions and simplified digital onboarding for overseas investors.
The proposed Closing Auction Session (CAS) changes follow a review of the existing framework and address concerns about the settlement price of derivatives on expiry days. Speaking at an event organised by the BSE Brokers’ Forum, Pandey said SEBI was examining feedback on its consultation paper before finalising the guidelines.
SEBI also aims to deepen India’s cash markets and improve price discovery. Wider investor participation, stronger securities borrowing and lending, and more efficient hedging and arbitrage could help improve market liquidity and efficiency.
The regulator is reviewing regulations governing depositories and their participants to simplify rules and strengthen fraud prevention. For stockbrokers, SEBI is exploring graded compliance requirements based on factors such as their size, client exposure and dependence on technology.
Reviews Clearing Arrangements and Compliance Rules
SEBI is also addressing concerns over transactions such as tender offers, share buybacks and offers for sale that remain outside the interoperability framework. These transactions require parallel clearing arrangements, increasing costs and compliance requirements for market participants.
Pandey said implementation of the proposed changes is targeted by the end of November 2026. The initiative forms part of SEBI’s broader efforts to streamline market infrastructure and improve operational efficiency.
SEBI Seeks Simpler Digital Onboarding for NRIs
Separately, SEBI has sought stakeholder feedback on simplifying digital onboarding for people residing outside India, including non-resident Indians (NRIs), without requiring their physical presence. Pandey said the consultation had received more than 400 comments.
He also reiterated the regulator’s focus on investor awareness. SEBI aims to expand investor education programmes across universities and colleges nationwide. Brokers and other market intermediaries, he added, should play an active role in improving financial literacy and helping investors make informed decisions.
The proposed SEBI CAS guidelines and wider regulatory reviews aim to improve market efficiency, simplify compliance and strengthen investor protection. Market participants will be watching for the final CAS guidelines and the planned November 2026 changes to clearing arrangements.
