The Securities and Exchange Board of India (SEBI) hopes to issue guidelines on changes to the closing auction session (CAS) within a week, chairman Tuhin Kanta Pandey said on Saturday, according to Moneycontrol. Speaking at an event organised by the BSE Brokers’ Forum (BBF) in Mumbai, he said the regulator was examining feedback on a consultation paper addressing concerns over the settlement price of derivatives on expiry days.
Pandey said SEBI would focus on deepening India’s cash markets and improving price discovery over the next decade. Greater participation, stronger securities borrowing and lending, and more efficient hedging and arbitrage could help improve liquidity and market efficiency, he said.
The regulator is also reviewing rules governing depositories and their participants to simplify regulations and strengthen fraud prevention. For brokers, SEBI is considering graded compliance requirements based on their size, client exposure and reliance on technology.
SEBI is separately working on changes to clearing arrangements for tender offers, buybacks and offers for sale that remain outside the interoperability framework. These transactions require parallel clearing arrangements, increasing costs and compliance requirements. The regulator is targeting the implementation of these changes by the end of November 2026, Pandey said.
The regulator has also invited comments on simplifying digital onboarding for people residing outside India, including non-resident Indians, without requiring them to be physically present. The consultation has received more than 400 comments, he said.
SEBI will also issue guidelines on the responsible use of artificial intelligence and machine learning. The proposed framework will follow a tiered approach and include clear accountability, data controls, kill switches and human oversight.
In addition, the regulator is strengthening business continuity and disaster recovery systems, cybersecurity safeguards and governance across market infrastructure institutions.
On investor awareness, Pandey said SEBI aimed to expand investor education programmes to universities and colleges across the country. Brokers and other market intermediaries would also need to play an active role in these efforts.
Pandey said India should aim to build a securities market that attracts global investment and sets international standards, combining scale with resilience, speed with safety, and innovation with responsibility.