SEBI Revises CAS Framework: Why Brokers Could Be The Bigger Winners

Securities and Exchange Board of India (File Photo)

The Securities and Exchange Board of India (SEBI) has revised the Closing Auction Session (CAS) framework in a move that could help ease volatility on derivatives expiry days. However, the changes may offer a greater business opportunity for brokers than for stock exchanges, according to a Jefferies report. The brokerage expects the updated method for determining settlement prices of expiring index derivatives to reduce uncertainty around expiry-day trading. It also anticipates a potential recovery in brokers’ order volumes, which have remained below pre-CAS levels.

“This should reduce expiry-day volatility under the Closing Auction Session (CAS), benefiting brokers whose orders remain below pre-CAS levels,” Jefferies said.

For exchanges, however, the scope for additional earnings growth could be more limited, as premium turnover has already returned to levels seen before CAS was introduced.

“With premium turnover for exchanges back to pre-CAS levels, earnings upside may be limited,” the report said.

Why SEBI’s Revised CAS Framework Matters

The changes come as trading activity shows signs of recovery following the introduction of the Closing Auction Session. According to Jefferies, the number of orders traded each day had been climbing from the lows recorded in August 2026.

Original source: https://www.timesnownews.com/business-economy