Neutral impactCorporate Action
CAS here to stay, liquidity will pick up, says Sebi Chief
Economic Times 1 hr ago·11 Sept 2026, 12:52 am
Sebi Chief Tuhin Kanta Pandey has clarified that the closing auction session (CAS) is a permanent feature of the Indian market. He acknowledged that while there were initial concerns regarding liquidity, the mechanism has proven effective, particularly during global events like MSCI rebalancing. Pandey also confirmed that the regulator is working on a consultation paper to refine the CAS framework, aiming to balance market stability with trading efficiency.
For investors, the CAS is a critical tool for price discovery at the end of the trading day. It helps determine the final settlement price, which is essential for index-linked products and derivatives. While the system has stabilised, some market participants still face challenges due to its dependency on the closing auction price. Investors should monitor the upcoming consultation paper to understand any potential changes that could impact their trading strategies.
Moving forward, market participants should watch for the release of Sebi's consultation paper on the CAS framework. This document will likely outline proposed adjustments to the mechanism. Keeping an eye on liquidity levels during volatile periods will also be important, as a robust closing auction is vital for maintaining orderly markets and ensuring fair pricing for all investors.
Excerpt from Economic Times
Sebi chief Tuhin Kanta Pandey stated the closing auction session is here to stay. He acknowledged initial liquidity concerns, which have improved in other markets. Pandey mentioned Sebi will soon issue a consultation paper on the CAS framework. Some market participants praised the implementation, especially during…Read the original at Economic Times
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