World · India Bureau
SEBI's New Index Derivatives Rules Set to Boost Broker Revenues
Brokers are poised to gain significantly from the Securities and Exchange Board of India's revised methodology for calculating index derivatives settlement prices. Analysts at Jefferies expect the shift to volume-weighted average pricing to drive material benefits for the brokerage sector.
LSN India ·
The Securities and Exchange Board of India has implemented changes to how index derivatives are settled on expiry days, shifting from the existing methodology to a volume-weighted average price (VWAP) model. The new approach, which follows consultation conducted in September 2026, marks a significant operational adjustment for India's derivatives markets.
The VWAP-based settlement mechanism is expected to create new revenue opportunities for brokers and financial intermediaries. By tying settlement prices to actual traded volumes and prices during specified windows, the system aims to reduce potential distortions in final settlement values and enhance market integrity.
Analysts at Jefferies have flagged Groww, one of India's prominent retail broking platforms, as a key beneficiary of these regulatory changes. The shift is anticipated to improve margin profiles and operational efficiency for brokers adapting to the new framework, potentially enhancing profitability across the sector.
The SEBI modifications represent part of broader efforts to strengthen India's derivatives market infrastructure and align it with international best practices. Market participants are now adjusting their settlement processes and risk management frameworks to comply with the new standards ahead of full implementation.