SEBI's Closing Auction Session Sparks Debate Over Market Readiness

When people buy and sell shares in the stock market, the price at the end of the day used to be simply the last price a share was traded at.

India's market regulator, SEBI, changed this with a new system called the Closing Auction Session.

Now, the final closing price is decided in a special mini-auction held after regular trading stops.

Regulators say this makes the closing price fairer and less likely to be manipulated.

But many traders were surprised by the change and complained about strange price moves near the close, because the final price can differ from the price right before trading ends.

Some traders even talked about boycotting trading for one day to show their frustration.

SEBI says the new system is here to stay and has asked brokers to teach investors how it works.

The article says the reform may be a good idea, but India should have prepared better, with more testing and education before starting it.

It also says SEBI should study the data to see whether the auction truly works well.

Good ideas need good planning, the article concludes.