Stock to buy after SEBI CAS new rule: Experts bullish on Groww brand parent Billionbrains Garage Ventures shares; target
SEBI's CAS new rule: Regulator's move to restore final 30-minute continuous-session VWAP for derivatives settlement may benefit brokerages with higher trading activities, say experts
Stock to buy after SEBI CAS new rule: Following the Indian capital market regulator SEBI’s action on the Closing Auction Session (CAS), to restore the final 30-minute continuous-session VWAP for derivatives settlement, brokerage stock Groww witnessed strong buying during the Friday session. Shares of Groww brand parent Billionbrains Garage Ventures Ltd finished around 1.50% higher on Friday, extending its uptrend for the second straight session.According to market experts, Billionbrains Garage Ventures shares are expected to benefit from SEBI's CAS new rule.
Experts believe a change in the methodology for computing the settlement price of index derivatives may reduce volatility on the expiry date, which is highly visible under CAS. Global Investment Bank Jefferies picked Goww to outperform its peers, while some Indian experts cited three major reasons to buy this brokerage stock.Stock to buy: Jefferies recommends GrowwSpeaking on the SEBI's CAS move, Jefferies India report said, “SEBI has changed the methodology to compute the settlement price of index derivatives on expiry day, as proposed in the Sep'26 consultation paper, to the volume-weighted average price (VWAP), effective 7th Dec'26.
This should reduce expiry-day volatility under the Closing Auction Session (CAS), benefiting brokers whose orders remain below pre-CAS levels. With premium turnover for exchanges back to pre-CAS levels, earnings upside may be limited. BUY Groww.”Grow parent Billionbrains Garage Ventures shareSpeaking on the three major benefits, which may attract fresh investors looking to reap the benefits of SEBI's CAS move, SEBI-registered market expert Anuj Gupta, said, “I am expecting three major developments post-SEBI's CAS move: a big jump in derivative trading volume, higher trading volume leading to higher brokerage revenue for brokerage firms, and brokers to benefit more than exchanges.”On why one should buy Grow parent Billionbrains Garage Ventures shares, Anuj Gupta said, “In Q2 results 2026, Groww reported that around 45% of its income came from the equity derivative segment.
This could become possible despite more than 14% QoQ dip in the equity derivative income of the brokerage. The brokerage has claimed that dip in the derivative segment income can be attributed to CAS. So, when SEBI's new rule on CAS gets effective in December 2026, Groww's equity derivative income is expected to shoot up, strengthening its balance sheet.”Billionbrains Garage Ventures share price targetOn a suggestion to Groww shareholders, Sumeet Bagadia, Executive Director at Choice Broking, said, “Groww brand parent Billionbrains Garage Ventures share price has strong support at ₹185.
On the upside, the stock may go up to ₹230, as the chart pattern signals upward movement in the near term. So, existing shareholders are advised to hold the scrip, maintaining a strict stop-loss at ₹185 for the near-term target of ₹230.”On his suggestion to fresh investors, Bagadia said, “Fresh investors can also buy the stock at current market price and keep on accumulating on every big dip until the stock is sustaining above ₹185.
They should also maintain the stop-loss at ₹185 for the ₹230 near-term target price.”SEBI CAS newsSEBI's decision to restore the final 30-minute continuous-session VWAP for derivatives settlement, effective December 7, 2026, addresses one of the principal concerns surrounding the Closing Auction Session introduced in August.“Over the past two and a half months, we tracked the behaviour of closing auctions, particularly on derivatives expiry days.
Our observations have focused on abrupt indicative price movements, the relationship between auction prices and continuous market trading, and the consequences of using auction-derived closing prices for derivatives settlement,” said Shai Coelho, Founder, Vtrender Technologies.Cash-market closing prices will continue to be determined through CAS, while expiring derivatives will settle against the volume-weighted prices established during the final 30 minutes of continuous trading.
This reduces the direct influence of auction-specific price movements on derivatives settlement.“Importantly, the auction itself remains. Its effectiveness in delivering reliable closing prices, adequate liquidity and orderly price discovery must continue to be measured. For Indian markets, this is a constructive regulatory adjustment. It preserves the development of a closing-auction mechanism while addressing a significant source of uncertainty for derivatives participants,” Shai Coelho of Vtrender Technologies concluded.Disclaimer: This story is for educational and informational purposes only.
The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions.
