The Securities and Exchange Board of India (SEBI) has confirmed receiving a significant 20,000 comments on its recent consultation paper. This overwhelming public response, submitted by the deadline of October 3, 2026, far exceeds earlier reports of around 3,500 submissions, highlighting intense market interest in the proposed reforms.
Key Proposals Under Review
SEBI's consultation paper sought feedback on critical adjustments to several market mechanisms:
- Closing Auction Session (CAS): This mechanism is designed to determine closing prices through an auction process. SEBI is reviewing specific issues identified with its current operation, particularly its potential impact on settlement prices of derivatives on expiry days.
- Market Timings: Proposed changes to trading hours.
- Settlement Methodologies for Derivative Contracts: Revisions to how index and stock derivatives are settled on their expiry dates.
SEBI Chairman Tuhin Kanta Pandey stated that the regulator would quickly examine all received comments to proceed with the proposed framework. He emphasized that the proposals were quite clear, suggesting a path forward once the feedback is assimilated.
Broader Regulatory Initiatives
Beyond the immediate consultation, Chairman Pandey also touched on other significant initiatives SEBI is pursuing:
Developing Corporate Bond Derivatives
Pandey highlighted the need for regulatory support, robust technical infrastructure, and increased market participation to develop India's corporate bond derivatives market. SEBI is actively promoting exchange-traded systems in the bond market, having already introduced measures like an electronic bidding platform for primary issuances and a strengthened request-for-quote mechanism for secondary-market transactions.
Easing Foreign Portfolio Investor (FPI) Access
Regarding foreign portfolio investor (FPI) flows, SEBI is collaborating with the Reserve Bank of India (RBI) to simplify onboarding and market access. While investment decisions ultimately depend on global opportunities and returns, SEBI's focus remains on streamlining processes, including allowing FPIs access to non-agricultural commodity derivatives.
The substantial volume of comments underscores the market's active engagement with SEBI's efforts to enhance stability, efficiency, and fairness across India's financial landscape. The market now awaits the final framework based on this extensive feedback.