NSE-BSE price gaps spark debate over new closing mechanism

In India, there are two big stock exchanges where people buy and sell parts of companies.

They are called the NSE and the BSE.

The government's market regulator, SEBI, introduced a new way of deciding the official closing price for the day, called the Closing Auction Session.

Right after it started, the two exchanges sometimes gave different closing prices for the same company.

For example, one company closed higher on one exchange but lower on the other.

Many investors were confused and wrote about it on social media.

Some big foreign investors liked the new system because it matches how markets work in other countries.

But many Indian banks, brokers, traders and exchanges were worried about it from the start.

They said India's markets do not have enough buyers and sellers to make the new system work well.

The debate is about whether the new closing prices can be trusted.