Indias derivatives market is set for its first monthly expiry under the new auction-based closing price system, marking a crucial test for the mechanism after concerns over sharp price swings and alleged manipulation. Introduced on August 3, the system has so far handled regular sessions and a weekly expiry. Tuesdays monthly expiry will bring stock futures and options into play.

India's new auction-based stock system faces its first monthly expiry, testing its stability amid trader concerns and regulatory scrutiny.

Indias derivatives market is set for its first monthly expiry under the new auction-based closing price system, marking a crucial test for the mechanism after concerns over sharp…