With reference to the Indian derivatives market and trading volumes, consider the following statements: 1. The BSE turnover in August reached a peak of Rs 40 lakh crore. 2. Sebi plans to issue a consultation paper on settlement changes within a week. 3. The NSE turnover in August was recorded at Rs 34.48 lakh crore. Which of the statements given above is/are correct?

Sebi to Revise Derivatives Settlement Method as Trading Volumes Plunge to Multi-Month Lows

GS3Economy · S&T · Environment · Security· Capital markets & SEBI· Prelims· 7 September 2026

Market integrity and liquidity: a GS3 case study on regulatory responses to capital market volatility.

Why in news

Sebi announced plans to review the settlement price methodology for derivative contracts following a significant drop in trading volumes and feedback from market participants.

Background

NSE's August turnover was Rs 34.48 lakh crore and BSE's was Rs 32.2 lakh crore, marking multi-month lows. Sebi plans to issue a consultation paper on settlement changes within a week.

Facts for Prelims

FactNSE August turnover: Rs 34.48 lakh crore
FactBSE August turnover: Rs 32.2 lakh crore
BodySebi: Securities and Exchange Board of India
S&TClosing Auction Session (CAS): A newly implemented session for derivative settlement

Prelims practice question

With reference to the Indian derivatives market and trading volumes, consider the following statements:

The BSE turnover in August reached a peak of Rs 40 lakh crore.
Sebi plans to issue a consultation paper on settlement changes within a week.
The NSE turnover in August was recorded at Rs 34.48 lakh crore.

Which of the statements given above is/are correct?

(a)2 only
(b)3 only
(c)1 and 3 only
(d)2 and 3 only

Show answer

Answer: (d) 2 and 3 only — Statements 2 and 3 are correct. Statement 1 is incorrect: The BSE August turnover was Rs 32.2 lakh crore.

For Mains

Q. Discuss the significance of settlement price mechanisms in maintaining market integrity and liquidity in India's equity derivatives segment.

Dimensions to cover in your answer

Market Liquidity: Correlation between settlement methodology and investor participation during high-volatility periods
Regulatory Oversight: Balancing market participant feedback with the need for standardized price discovery
Systemic Risk: Impact of low turnover on the efficacy of the Closing Auction Session (CAS)

Keywords: Market Integrity · Price Discovery · Liquidity Risk · Regulatory Framework · Capital Markets

Read the full news →Report a mistake in this note Source: Economic Times ↗

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