Zerodha's Nithin Kamath: CAS isn't the problem, shallow markets are

At the end of every trading day, the stock market picks a final price for each stock.

In India, they recently changed how that final price is chosen using something called CAS.

After this change, stock prices started swinging around more at the end of the day, and some people blamed CAS.

A man named Nithin Kamath, who runs a big trading company called Zerodha, says CAS isn't really the problem.

He says the real problem is that India's market is 'shallow'—meaning not enough people and companies are actively buying and selling.

There are over 130 million registered investors, but only a few million trade on any normal day.

When there aren't enough traders, big buy or sell orders can move prices a lot.

He also says it's hard to borrow shares to bet against stocks, and some taxes make trading more expensive.

He thinks the fix is to make it easier and cheaper for many different kinds of traders to take part.

Until then, he says, the big price swings at the close will keep happening.