SEBI Introduces Closing Auction Session for Equity Market

SEBI, the markets regulator in India, has decided to introduce a new way to determine the closing prices of stocks.

This new method, called a closing auction session (CAS), will make the process more transparent and fair.

The CAS will run for 20 minutes at the end of the trading day, where buyers and sellers can place orders to determine the closing price.

This price will be used to settle derivatives and help large investors trade more efficiently.

The new system will be introduced in phases, starting with stocks that have derivative contracts.

The goal is to make the Indian stock market more aligned with global practices, ensuring fair and efficient trading for everyone.