SEBI
SEBI To Issue CAS Guidelines Soon, Expand Interoperability, Introduce Tiered AI Framework
10 October 2026 · www.ndtvprofit.com
SEBI Chairman Tuhin Kanta Pandey announced that guidelines on the Closing Auction Session will be issued within about a week, that tender offers, buybacks and offers for sale will be brought into the clearing corporations' interoperability framework by end-November 2026, and that a tiered AI and machine learning framework with accountability and kill-switch provisions is coming soon.
Points to Remember
- SEBI to issue Closing Auction Session (CAS) guidelines in about a week, after reviewing comments on its consultation paper on derivatives settlement prices on expiry days.
- Tender offers, share buybacks and offers for sale to be included in the interoperability framework for clearing corporations, targeted by end-November 2026.
- New AI/ML framework to follow a tiered approach with clear accountability, data controls, emergency shutdown ('kill switch') mechanisms and human oversight.
- SEBI to align its AI approach with IOSCO's Supervisory Toolkit for AI; regulated entities remain responsible for AI-driven outcomes, data quality, model governance and cybersecurity.
- SEBI is also reviewing depository regulations and exploring graded compliance requirements for brokers based on scale, client exposure and technology dependence.
Why it matters
These changes will affect how market intermediaries handle expiry-day settlement, clearing costs, and AI use in operations — useful context if you deal with capital market clients or clearing and settlement processes.
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