Sebi reintroduces VWAP for derivatives expiry after CAS turns markets volatile

The Securities and Exchange Board of India (SEBI) has reintroduced the Volume Weighted Average Price (VWAP) for derivatives expiry, replacing the Clearing and Settlement (CAS) mechanism that led to abrupt price swings and market volatility.

SEBI has revised the CAS framework, setting a new auction window and changing the calculation of reference prices for eligible securities to streamline the process and clarify handling procedures.

The Nifty 50 and Sensex 30 indices recorded their highest rises in percentage terms since June 12, with the Nifty closing 1.66% higher at 22,997.35 and the Sensex closing 2.1% up at 74,315.61.

A report by Centrum expects telecom tariffs to rise by 12-15% over the next three to four months due to limited competition and strong demand for 5G fixed wireless and broadband services.