2 days ago

Somaiya urges SEBI to suspend and redesign CAS

Kirit Somaiya wants India’s market regulator to review a new trading process called CAS.

On August 27, the Sensex moved down by more than 2,200 points and then recovered about 2,000 points in the last minutes of trading.

This happened during the first monthly derivatives expiry after CAS began.

Somaiya is concerned that there may not be enough buyers and sellers after 3:15 p.m.

Under CAS, regular continuous trading ends at 3:15 p.m.

and a separate auction is used to determine closing prices.

Equity derivatives continue trading until 3:40 p.m.

He wants CAS paused, redesigned, and investigated before being brought back.

Key facts

Market movement: The Sensex reportedly fell by more than 2,200 points and recovered around 2,000 points.
Timing: The sharp movement took place between 3:20 p.m. and 3:30 p.m. on August 27.
Trading context: The episode occurred during the first monthly derivatives expiry since CAS was introduced.
Continuous trading cutoff: Continuous trading in CAS securities ends at 3:15 p.m.
Auction mechanism: After 3:15 p.m., the market moves into a separate closing auction.
Derivatives trading: Equity derivatives continue trading until 3:40 p.m.
Requested action: Somaiya proposed temporarily suspending CAS and reintroducing it after a redesign.

thehansindia.com · 2 days ago