SEBI to issue CAS guidelines in a week, says chief Tuhin Kanta Pandey

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Market regulator Securities and Exchange Board of India (SEBI) hopes to issue guidelines on changes to the closing auction session (CAS) in about a week, chairman Tuhin Kanta Pandey said on Saturday at an event organised by the BSE Brokers’ Forum (BBF) in Mumbai.

“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 to address concerns over the settlement price of derivatives on expiry days.

Outlining his vision for India's securities markets over the next decade, Pandey said SEBI would focus on deepening cash markets and improving price discovery. Wider participation, stronger securities borrowing and lending, and more efficient hedging and arbitrage could improve liquidity and market efficiency, he said.

“Following review of the closing auctions session, a consultation paper was put out to address concerns in respect of settlement price of derivatives on expiry date,” Pandey said.

SEBI is also reviewing regulations governing depositories and their participants to simplify rules and strengthen fraud prevention. For brokers, the regulator is exploring graded compliance requirements based on their scale, client exposure and dependence on technology.

Separately, SEBI is addressing concerns over transactions such as tender offers, buybacks and offers for sale that remain outside the interoperability framework. These require parallel clearing arrangements, adding to costs and compliance requirements. Implementation of the changes is targeted by the end of November 2026, Pandey said.

SEBI has also sought comments on simplifying digital onboarding for persons resident outside India, including non-resident Indians, without requiring their physical presence. The consultation has received more than 400 comments, he said.

The regulator will shortly issue guidelines on the responsible use of artificial intelligence and machine learning. These will adopt a tiered approach, with clear accountability, data controls, kill switches and human oversight.

SEBI is also strengthening business continuity, disaster recovery, cybersecurity safeguards and governance across market infrastructure institutions.

Emphasising investor awareness, Pandey said SEBI aimed to take investor education to universities and colleges across the country. Brokers and other intermediaries must play an active role in this effort, he said.

“Our ambition should be clear to build a market that the world not only invests in but also looks to for setting standards,” Pandey said, adding that India should build a market that combines scale with resilience, speed with safety, and innovation with responsibility.