Shares of Billionbrains Garage Ventures, the parent company of brokerage platform Groww, rose around 1.5% on Friday, October 16, 2026, extending their gains for a second consecutive session. Market experts attributed the positive sentiment partly to the Securities and Exchange Board of India’s (SEBI) decision to revise the methodology used to calculate settlement prices for index derivatives on expiry days.
The regulatory change is expected to take effect on December 7, 2026. According to market analysts, restoring the volume-weighted average price (VWAP) from the final 30 minutes of the continuous trading session could help reduce expiry-day volatility associated with the Closing Auction Session (CAS).
The development has drawn attention to brokerage companies, including Groww, as investors assess whether changes in derivatives trading activity could support trading volumes and brokerage revenue.
SEBI’s New CAS Rule: What Is Changing?
SEBI has decided to restore the use of the volume-weighted average price (VWAP) from the final 30 minutes of the continuous trading session for calculating settlement prices for index derivatives on expiry days.
The revised methodology is scheduled to come into effect on December 7, 2026, following a proposal outlined in the regulator’s September 2026 consultation paper.
The change is intended to address concerns surrounding expiry-day price volatility under the Closing Auction Session framework. A revised settlement calculation could influence trading behaviour and how market participants manage their derivatives positions near expiry.
However, the actual effect on trading volumes, volatility and brokerage earnings will depend on how market participants respond once the new methodology takes effect.
Why Jefferies Sees Potential in Groww Shares
Global investment bank Jefferies has maintained a positive view of Groww following SEBI’s decision. In its assessment, the revised settlement methodology could reduce expiry-day volatility under CAS and potentially benefit brokers whose order activity had remained below pre-CAS levels.
Jefferies also noted that premium turnover on exchanges had returned to pre-CAS levels, suggesting that the scope for further earnings improvement could be limited. Despite this consideration, the brokerage reiterated its Buy recommendation on Groww.
The assessment highlights the importance of examining how regulatory changes affect brokerage operations rather than assuming that any increase in market activity will automatically translate into higher profits.
Three Potential Benefits of SEBI’s CAS Decision for Groww
SEBI-registered market expert Anuj Gupta identified three possible developments following the regulatory change.
- Higher derivatives trading volumes: A change in expiry-day settlement calculations could encourage trading activity to recover, depending on market participants’ response.
- Potential growth in brokerage revenue: Higher trading volumes could increase transaction-based revenue for brokerage firms, although the final impact would depend on trading mix, pricing and costs.
- Potential benefits for brokers: Brokerage firms could benefit from increased client trading activity, with the relative impact on brokers and exchanges depending on how volumes and revenues develop.
These are expectations expressed by market experts, not confirmed outcomes. The new rule’s actual impact will become clearer after implementation and as subsequent trading data emerges.
