Market chaos after CAS: What exactly is Sebi reviewing and will it stop expiry-day wild swings?

Sebi’s review of derivative settlement price methodology could reduce sharp expiry-day swings linked to the Closing Auction Session (CAS). Analysts expect the regulator to consider delinking derivative settlements from CAS closing prices rather than scrapping the mechanism. However, a revised framework may curb extreme volatility without eliminating normal expiry-day market swings.