BSE, NSE, Nuvama Wealth: Capital market stocks trade mixed after SEBI revises CAS framework

Capital market stocks such as BSE Ltd, National Stock Exchange (NSE), Angel One, Nuvama Wealth Management, HDFC Asset Management Company (HDFC AMC), ICICI Prudential Asset Management Company (ICICI AMC), Billionbrains Garage Ventures (Groww), among others, were in the spotlight on Friday, October 16.

The stocks are expected to be in focus as market regulator SEBI on Thursday revised the framework for the Closing Auction Session (CAS), changing trading timings and the methodology for determining settlement prices of stock and index derivatives contracts.

Here are the details

Under the revised framework, the 10-minute closing auction session will operate from 3:30 pm to 3:40 pm on all trading days, while trading in index and stock derivatives will continue until 3:45 pm, with certain exceptions for expiring index derivatives contracts, SEBI said in its circular.

Further, a key change pertains to the settlement of expiring derivatives contracts, which will now be based on a Volume Weighted Average Price (VWAP) methodology using the last 30 minutes of continuous trading.

The revisions follow a review of the existing framework, consideration of public comments, recommendations of SEBI's Secondary Market Advisory Committee, and discussions with stock exchanges.

What market participants need to know

A key change is the restoration of the volume-weighted average price (VWAP) methodology for settling expiring derivatives contracts. The settlement price will be based on the VWAP of the underlying stock or the constituent securities of the underlying index during the last 30 minutes of continuous trading.

The changes are relevant to BSE, an exchange operator, and brokerage firms such as Angel One, Groww and Nuvama Wealth Management, given their exposure to equity and derivatives trading. However, the direct impact on their earnings will depend on how the revised framework affects trading activity and market participation.

Most of the changes will take effect from December 7, 2026, while provisions governing the transition of unexecuted limit and iceberg orders into the closing auction session will be implemented from February 8, 2027.

How stocks were performing in morning trade

The NIFTY Capital Markets index was trading 1.21% lower at 11:01 am on Friday, October 16, amid broad-based weakness in capital market stocks.

BSE shares fell 2.35%, while Angel One declined 3% and MCX traded 1.7% lower. Among asset management companies, HDFC AMC, ICICI Prudential Asset Management Company, UTI AMC and Aditya Birla Sun Life AMC were all trading in the red. Groww, however, bucked the trend, rising 1.45%.

The fall in capital-market stocks despite SEBI's revised CAS framework is not necessarily contradictory. The changes are broadly positive for derivatives traders, but the benefit to exchanges and brokers is less straightforward, and investors may also be booking profits after the recent rally.