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[SITUATION] · [QUIET] · [BUSINESS]
2 clusters · 3 sources · 11 days · First seen · Last updated
SEBI Closing Auction Session market reform
Overview
SEBI Chairman Tuhin Kanta Pandey has confirmed that the Closing Auction Session (CAS), implemented on August 3 to replace the volume-weighted average price (VWAP) system, is a permanent market reform. Despite trader concerns regarding market volatility and sharp price movements during the final minutes of trading, the regulator intends to maintain the mechanism to align Indian equities with global benchmarks.
Pandey noted that market friction is largely due to legacy infrastructure and internal systems that require updates. While SEBI is reviewing participant feedback and social media discussions, any future adjustments will be limited to “minor operational tweaks” rather than structural changes. Additionally, the regulator plans to revamp the securities lending and borrowing mechanism (SLBM) to enhance market efficiency.
By late August, the regulator maintained its stance against immediate changes to the CAS, expressing confidence that participation will grow as brokers integrate the facility into their trading applications.
Entities
National Stock Exchange · Tuhin Kanta Pandey · Securities and Exchange Board of India · Bombay Stock Exchange
Timeline
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18 days ago
[BUSINESS] 3 sourcesSEBI Chairman maintains CAS mechanism, nears NSE IPO approvalSEBI Chairman Tuhin Kanta Pandey confirmed no immediate changes to the Closing Auction Session mechanism and noted that the regulator is close to approving the National Stock Exchange’s IPO.
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28 days ago
[BUSINESS] 5 sourcesSEBI Chairman confirms Closing Auction Session is permanent reformSEBI Chairman Tuhin Kanta Pandey confirmed the Closing Auction Session is a permanent reform, stating the regulator will review feedback for minor tweaks but will not roll back the new system.
Sources
news18.com · newsable.asianetnews.com · orissapost.com