BSE shares rose nearly 5% on September 4 after a statement from the Securities and Exchange Board of India (SEBI) about reviewing derivative settlement prices. The shares opened at ₹3,400 and hit an intraday high of ₹3,474. They settled around ₹3,437, a notable increase from ₹3,168 over the past two sessions.
Key Details
SEBI's decision to review how settlement prices are determined follows feedback on the new Closing Auction Session (CAS). This session, launched on August 3, aimed to set closing prices for securities. However, it showed problems like differing closing levels across exchanges and unstable options pricing. SEBI plans to propose changes to fix these issues and will issue a discussion paper within a week detailing the proposed adjustments.
Market analysts noted that the rise in BSE shares shows positive sentiment about SEBI's move. This response addresses market volatility linked to the CAS. Anuj Gupta, a SEBI-registered market expert, said, "The uptrend in BSE shares came after SEBI's statement to review the derivative settlement prices. This has injected positive market sentiment regarding the volatility and pricing issues associated with the newly introduced CAS."
Background
The rise in BSE shares may lead to more interest in derivatives and related equities. Investors are looking forward to potential changes in settlement pricing that could stabilize market conditions. They will watch for SEBI's discussion paper, expected within a week, to understand how the proposed changes might affect market dynamics.
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Based on reporting by: livemint.com, moneycontrol.com