SEBI Rules Coming: Expiry-Day Settlement Price in a Week, AI Guidelines Soon, Says Chairman
Which SEBI rules are coming next for traders and investors? SEBI’s chairman, Tuhin Kanta Pandey, gave a short list on Saturday 10 October. Rules on how the settlement price of derivatives is set on expiry day should come “in about a week”. Guidelines on the use of artificial intelligence (AI) in markets will follow “shortly”. And buybacks, tender offers and offers for sale should move into the clearing interoperability framework by the end of November. He was speaking at the Capital Market Confluence 2026 of the BSE Brokers’ Forum, as reported by ANI and ETLegalWorld.
None of these is a final rule yet. Here is what each means for you and what is already on record.
SEBI rules due soon: the list at a glance
| Item | Status | Timeline given | Who it affects |
|---|---|---|---|
| Expiry-day settlement price of derivatives | Consultation done; SEBI reviewing comments | About a week | F&O traders, option sellers |
| AI and machine learning guidelines | Being finalised | “Shortly” | Brokers, advisers, fund houses, and their clients |
| Buybacks, tender offers, OFS under interoperability | Implementation planned | End-November 2026 | Shareholders tendering shares; brokers |
| Digital onboarding of non-residents without physical presence | 400+ comments received | Circular “shortly” | NRIs and foreign investors |
Source: chairman’s remarks as reported by ANI/ETLegalWorld, 11 Oct 2026. Timelines are SEBI’s own estimates.
How we got here: the dates
- 16 Jan 2026: SEBI circular introduces the Closing Auction Session.
- 3 Aug 2026: CAS starts in the equity cash segment.
- 3 Sep 2026: SEBI says it will review the expiry-day settlement price method and issue a consultation paper.
- 10 Oct 2026: chairman says final guidelines are about a week away.
1. Expiry-day settlement price
This one has a clear paper trail. SEBI’s circular of 16 January 2026 brought in a Closing Auction Session (CAS) in the equity cash segment from 3 August 2026, to set each stock’s closing price. That closing price also feeds the settlement price of derivative contracts on expiry.
On 3 September, in press release 53/2026, SEBI said the biggest area of feedback after CAS started was exactly this: settlement prices of expiring derivatives based on the CAS close. It said it “may be proposing certain changes” and would issue a consultation paper. On Saturday the chairman said SEBI was examining comments on that paper and hoped to issue guidelines in about a week.
What it means: if you hold options or futures to expiry, the price at which they settle could be computed differently from the next rule onward. Until the circular is out, assume today’s method applies, and check the effective date before your next expiry.
2. AI guidelines for market firms
The framework would be “tiered”, with clear accountability, data controls, kill switches and human oversight, and aligned with IOSCO’s supervisory toolkit for AI, the chairman said. His line: “Technology cannot dilute accountability.”
What it means for you: a broker, adviser or fund house that uses AI tools stays responsible for what those tools do. If an algorithm gives you a wrong recommendation or mishandles your data, the firm cannot blame the software. Before acting on any app’s “AI tip”, check that the firm is registered; our guide to checking a SEBI-registered adviser shows how.
3. Buybacks, tender offers and OFS
These deals currently need parallel clearing arrangements, which raise costs and compliance work, the chairman said. Bringing them under the interoperability framework, where trades can be cleared through any of the clearing corporations, is targeted for the end of November 2026. For a retail shareholder, the visible change should be small. The process of tendering shares stays the same; what may change is how your broker clears it.
4. Easier onboarding for NRIs
SEBI has received over 400 comments on letting persons resident outside India open accounts digitally, without being physically present. A circular is expected shortly. If you are an NRI planning to open a demat or broking account, it may be worth waiting a few weeks to see the final process.
The numbers he cited
- Market capitalisation: about ₹472 lakh crore
- Unique investors: more than 15 crore
- Mutual fund assets: about ₹87 lakh crore
- Outstanding corporate bonds: about ₹61 lakh crore
With bonds in mind, SEBI’s new Credit Risk-o-Meter applies to bond offers from around 21 November (45 days from SEBI’s 7 October circular).
What to do now
- F&O traders: watch SEBI’s circulars page this week and read the effective date before carrying positions to expiry.
- Everyone else: nothing to do yet. Ignore social-media posts claiming a “new SEBI rule” until the circular appears on sebi.gov.in.
Messages your broker sends you are covered in our post on SEBI’s broker-app message rules.
Questions we expect this week are below.
FAQs
Has SEBI changed the expiry-day settlement price?
Not yet. The chairman said guidelines are expected in about a week. The current method stays until then.
Are the AI guidelines final?
No. SEBI said they will be issued “shortly”; no draft text was released on Saturday.
Will buyback participation change for me?
Probably not in how you apply. The change is in clearing, targeted for end-November 2026.
Takeaway: SEBI rules on expiry-day settlement prices are due in about a week, and AI guidelines soon after; act on the circular, not on reports.
Sources
- SEBI press release 53/2026, 3 Sep 2026 (PDF read in full)
- SEBI press releases index, read 12 Oct
- Chairman’s speech of 10 Oct 2026: as reported by ANI via ETLegalWorld (11 Oct, 10:19 PM IST). We did not find the speech text on SEBI’s site.
Partly verified, 12 Oct 2026, 6:00 AM IST. Read: SEBI press release 53/2026 (3 Sep 2026) in full. The chairman’s 10 Oct remarks are as reported by ANI/ETLegalWorld; we found no speech text on sebi.gov.in. Not re-read: the consultation paper on settlement price and the 16 Jan 2026 CAS circular.
