SEBI plans to issue a final framework on the Closing Auction Session (CAS) soon after receiving more than 3,500 comments on its consultation paper, with the chairman noting the extensive feedback.

Changes to the CAS framework are being finalized and will be reviewed and analyzed promptly to address market concerns.

Separately, SEBI is advancing the corporate bond derivatives market by enabling electronic bidding for primary issuances, regulating online bond platforms, and strengthening the quote mechanism for secondary trades, with bond indices and derivatives seen as a major milestone.

Efforts to expand the bond derivatives market include upgrading technology infrastructure, promoting exchange-traded systems, and reinforcing the regulatory framework for online bond platforms.

Pandey emphasized that developing bond indices and derivatives could mark a significant milestone, alongside ongoing measures to support the bond market and regulate online platform providers.

The proposed CAS changes aim to address concerns about their impact on derivative settlement prices and will offer alternatives for market participants, framed within a structured identification of issues.

The regulator will quickly review responses and move to issue a final framework or circular once feedback is compiled, with proposals clearly defined.

The CAS review seeks to resolve issues in closing price determination for the equity cash segment and its influence on derivatives settlement prices, with a circular on the matter expected soon.

SEBI will facilitate easier onboarding for FPIs and coordinate with the RBI to ease market access, including allowing FPIs access to non-agricultural commodity derivatives, while stating that investment decisions depend on relative returns.

Accessibility measures for FPIs have already been implemented, and SEBI will continue to listen to FPIs to improve onboarding and access.

In pursuing greater foreign participation, SEBI is collaborating with the RBI to simplify access for FPIs, reiterating that decisions hinge on global return opportunities.

The consultation sought feedback on CAS changes, market timings, and derivative settlement methodologies, with comments due by early October.