0 months ago
SEBI Rules Out Immediate Changes to Closing Auction Session
The stock market in India has a new way to decide stock prices at the end of the trading day.
It is called the Closing Auction Session, or CAS.
Before, a different method called VWAP decided the closing price for some stocks.
Now, buyers and sellers place orders in a short window of time, and the system matches them to find one price.
The people who run the market are called SEBI, and they say the new system is working well.
SEBI said it does not plan to change the system right now.
They want more people and companies to take part in this new way of trading.
More people joined on the second day than on the first day.
SEBI thinks this will make prices calmer and fairer.
The new system is meant to make closing prices more clear and honest for everyone.
SEBI has no immediate plans to review or revise the newly launched Closing Auction Session (CAS) framework and will continue monitoring its implementation.
SEBI Chairman Tuhin Kanta Pandey held discussions with market participants and brokers on Tuesday, focusing on improving participation in the closing auction.
CAS replaced the Volume Weighted Average Price (VWAP)-based method for determining closing prices of stocks with active futures and options contracts on August 3.
The Benchmark Nifty 50 experienced a sharp spike in closing trade over the first two days, while participation improved on the second day of implementation.
SEBI believes CAS will improve price discovery, increase transparency, bring liquidity into a single closing window, and support execution of large institutional orders.
- Who
- The Securities and Exchange Board of India (SEBI), led by Chairman Tuhin Kanta Pandey, along with market participants and brokers.
- What
- SEBI ruled out immediate changes to the newly launched Closing Auction Session (CAS) framework and will continue monitoring its implementation.
- Where
- India's stock markets.
- When
- Discussions took place on Tuesday; CAS was introduced on August 3.
- Why
- To increase participation, reduce sharp price movements, and improve price discovery, liquidity, and transparency in the closing auction.
Key facts
- Regulator
- Securities and Exchange Board of India (SEBI)
- SEBI Chairman
- Tuhin Kanta Pandey
- Framework
- Closing Auction Session (CAS)
- Introduced
- August 3
- Replaced
- Volume Weighted Average Price (VWAP)-based method
- Scope
- Stocks with active futures and options contracts
- Session End
- Random time between 3:28 PM and 3:30 PM
- Benefits Cited
- Better price discovery, liquidity, transparency, large institutional order execution
Quotes
Unnamed source quoted by Reuters
Industry insider
“It’s too early to do any review. Participation increased on Tuesday and the Securities and Exchange Board of India expects participation to increase further.”
financialexpress.com
“doesn’t see any flaw in it or its design”
financialexpress.com
Sources
Related news
SEBI Finds No Manipulation In New Closing Auction System
Sebi Chairman Says Closing Auction Session Here to Stay
SEBI Defends Closing Auction Transition, Says System Improves Price Discovery
SEBI Warns Immediate Action Against Closing Auction Manipulation
SEBI's Closing Auction Session Sparks Debate Over Market Readiness
India’s SIP Boom Meets Years of Modest Market Returns
Americans Oppose Trump’s Canada Tariffs and Lake America Renaming
How Indian News Photographs Became National Visual Memory
Meta Removes Scam Ads After India Flags Porn Malware Bait
X’s Transparency Pledge Collides With India’s Secrecy Rules
