Desk note · industry · SEBI / derivatives
On 15 October 2026 SEBI issued a final framework that keeps the last 30 minutes of cash-market trading as the reference for expiry-day F&O settlement after broker pushback, while shortening and retiming the equity closing auction from 7 December 2026.
On 15 October 2026, the Securities and Exchange Board of India published the final rules for how India’s equity and derivatives markets close each day. After weeks of debate, the regulator kept the existing method for expiry settlement: the volume-weighted average price over the last 30 minutes of the regular cash session still sets the final settlement level for stock and index derivatives. That choice partly reverses an earlier plan that would have leaned more heavily on the separate closing auction. Alongside that decision, SEBI tightened the closing auction itself. From 7 December 2026 the session will run from 3:30 pm to 3:40 pm, with a one-minute reference-price window, five minutes when both limit and market orders are allowed, then limit-only orders until a random close between 3:38 pm and 3:40 pm.
Expiry days are when index and stock futures and options convert into cash or delivery. A small change in the reference price can shift payouts for millions of contracts. Brokers and proprietary desks argued that moving away from the familiar 30-minute VWAP would inject volatility and operational risk. SEBI’s compromise keeps that anchor while still reforming the cash-market auction that feeds into closing prices. Index derivatives will continue trading until 3:45 pm on ordinary days but must stop at 3:30 pm on expiry. Stock derivatives can trade until 3:45 pm even on expiry. Unexecuted limit and iceberg orders from the continuous session will generally roll into the auction, with new rules on margins and what happens to stop-loss tickets.
If you trade F&O, refresh your broker’s expiry-day checklist before December. Algos tied to the old auction window may need retuning. If you only invest in mutual funds, the change still matters indirectly because passive and arbitrage flows in the last half hour help set fair prices. Watch exchange circulars in the next seven days, how indicative expiry values print in real time after 7 December, and whether volumes cluster differently in the final 30 minutes once the shorter auction goes live.
Trade policy / exports
Commerce minister Piyush Goyal said on 22 October 2026 that India’s proposed free-trade agreement with the European Union could become operational within four to five months after signing, with the deal expected to be inked before year-end during his visit to Germany.
Food delivery / quick commerce
Swiggy reported on 22 October 2026 that September-quarter revenue rose 36% to about ₹7,571 crore and the consolidated net loss narrowed to ₹922 crore, as food delivery posted record adjusted core profit of about ₹349 crore while quick-commerce Instamart lost about ₹764 crore at the segment level amid heavier discounting and 69 new dark stores.
Quick-service restaurants / consumers
KFC and Pizza Hut operator Sapphire Foods India said on 22 October 2026 that September-quarter consolidated restaurant sales rose 20% year on year to about ₹885 crore, with KFC India same-store sales up 14% and adjusted EBITDA margin expanding 100 basis points to 7.1% even as the listed stock remained far below its 52-week high.
RBI / government borrowing
On 22 October 2026, the Reserve Bank of India accepted no bids at the scheduled sale of short-dated government treasury bills, the first full cancellation in about seven months, as investors demanded higher yields amid a bond selloff, oil-linked inflation fears, and expectations of more rate hikes after October’s policy minutes.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.