MUMBAI / NEW DELHI, SEPTEMBER 22, 2026 — During trading on Tuesday, September 22, 2026, Securities and Exchange Board of India (SEBI) officials confirmed regulatory moves targeting derivatives expiry mechanics, following insights shared by leadership at the 11th JP Morgan India Conference.
Speaking at the financial summit on Tuesday, September 22, 2026, SEBI representatives highlighted that after establishing the Closing Auction Session as a core market structure reform, the regulator is turning its focus toward index and stock derivatives settlement prices on expiry days. A public consultation paper has already been issued to gather critical feedback from institutional participants, brokers, and retail stakeholders across BSE and NSE ecosystems.
Key Regulatory Milestones & Timeline
| Regulatory Milestone | Exact Calendar Date |
|---|---|
| JP Morgan India Conference Address by SEBI Leadership | September 22, 2026 |
| Consultation Paper Issuance on Expiry Settlement | September 2026 (Pending RHP/Notice update) |
Derivatives Expiry Reforms: Addressing Market Manipulation and Volatility
According to regulatory filings and market commentaries compiled from Moneycontrol and Economic Times feeds on Tuesday, September 22, 2026, exponential growth in Futures and Options (F&O) trading volumes has amplified expiry-day price swings. Institutional brokers and retail communities on platforms like Reddit r/IndianStockMarket have repeatedly flagged sudden intraday spikes and dips driven by algorithmic execution around contract expiry windows.
SEBI’s proactive stance follows recent enforcement actions, including a crackdown on novel F&O manipulation schemes and investigations into revenue misstatements across listed entities. By revisiting settlement pricing mechanisms, the regulator aims to curb artificial price distortion and enhance systemic stability across both benchmark exchanges.
Frequently Asked Questions
Why is SEBI reviewing derivatives settlement prices on expiry days?
SEBI is addressing expiry-day settlement concerns to mitigate extreme intraday volatility and prevent potential market manipulation that impacts both retail traders and institutional portfolios during contract closures.
How will the proposed changes affect regular traders?
The upcoming regulatory framework is expected to normalize pricing behavior near market close on expiry days, reducing sudden spikes in options premium decay and ensuring fairer execution benchmarks.
What is the current status of the consultation process?
A formal consultation paper has been released to invite public and institutional comments, setting the stage for finalized policy guidelines following industry feedback.
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