MUMBAI, Jan. 16 -- The Securities and Exchange Board of India (Sebi) is set to soon release proposals on netting of foreign portfolio investor (FPI) trades and norms for a closing auction framework, Sebi chairman Tuhin Kanta Pandey said on Friday.

"I think the consultation paper (on netting) will be out very, very soon," Pandey said at Samvad, a symposium on security markets hosted by Sebi. "We are looking at closing auction session very closely and I should presume that the circular will be out soon, possibly today."

Pandey had first flagged the regulator's intent to introduce a closing auction mechanism and examine netting of FPI trades in November.

At present, FPIs must settle each buy and sell transaction separately, even when trad...