2 hrs ago
SEBI May Partly Reverse Closing Auction Rules After Pushback
SEBI introduced a new way to set some stocks’ closing prices called the Closing Auction Session, or CAS.
It uses buy and sell orders to find a price at the end of the day.
Before CAS, prices were based on trades made during the last 30 minutes of regular trading.
SEBI says it is reviewing some parts of the system after hearing from market participants.
It also asked the public for comments and had received 20,000 by October 3.
Trading activity was especially concentrated near the end of the session under CAS.
A Reuters source said auctions will still set closing prices for the underlying cash-market stocks.
The report says SEBI may partly reverse the rules, but does not specify which provisions may change.
SEBI may partly revise its Closing Auction Session (CAS) rules following pushback, according to the report.
A Reuters source said a closing auction will still determine end-of-day prices for underlying cash-market stocks.
SEBI said it was reviewing aspects of CAS and derivatives settlement methodology after considering early experience and stakeholder feedback.
By October 3, SEBI had received 20,000 comments on its consultation paper, issued September 12.
During CAS, average traded value per minute in the relevant closing period rose to Rs 189.82 crore on NSE and Rs 288.94 crore on BSE.
- Who
- The Securities and Exchange Board of India (SEBI); a Reuters source provided the information about cash-market closing auctions.
- What
- SEBI may partly revise its Closing Auction Session rules, while auctions will still be used to determine end-of-day prices for underlying cash-market stocks, according to the report.
- Where
- India’s equity cash market, including trading on NSE and BSE.
- When
- CAS took effect on August 3, 2026; SEBI issued a consultation paper on September 12 and had received 20,000 comments by October 3.
- Why
- SEBI said its initial experience and feedback highlighted a need to review aspects of CAS and derivatives settlement; trading activity was concentrated near the session close.
Key facts
- Framework
- Closing Auction Session (CAS)
- Effective date
- August 3, 2026
- Consultation paper
- Issued September 12
- Comments received
- 20,000 by October 3
- NSE average traded value per minute
- Rose from Rs 126.31 crore before CAS to Rs 189.82 crore during CAS
- BSE average traded value per minute
- Rose from Rs 141.48 crore before CAS to Rs 288.94 crore during CAS
- Price-setting method under CAS
- An equilibrium price discovery mechanism based on aggregate buy and sell orders in the auction order book
Quotes
SEBI
India’s securities market regulator
“On NSE, the average traded value per minute increased from Rs 126.31 crore during 3:00 pm to 3:30 pm in the pre-CAS period to Rs 189.82 crore during 3:20 pm to 3:30 pm during the CAS period, while on BSE it increased from Rs 141.48 crore to Rs 288.94 crore, respectively.”
businesstoday.in
Sources
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