India Restores Old Derivatives Settlement Method After Auction Volatility

The reversal matters less as a technical fix than as a signal: a market-infrastructure reform was rolled back once it produced volatility rather than dampening it, and the regulator chose to restore the older volume-weighted average price benchmark rather than refine the auction. That leaves the closing call auction in place for cash equities while severing its link to derivatives settlement, an unusual bifurcation that could complicate hedging and arbitrage activity around expiries. Whether the auction survives in its remaining role, or is eventually withdrawn altogether, is the open question.