Neutral impactEconomy
India’s CAS liquidity concerns not unique, says Sebi chief
Mint 2 hrs ago·10 Sept 2026, 2:39 pm
Sebi Chairperson Madhabi Puri Buch has clarified that the current liquidity issues facing the Closing Auction mechanism in India are not unique to the country. She noted that similar challenges have been observed in other major markets, where initial periods of thin trading volumes are common as the system stabilizes.
This reassurance is significant for retail investors who may have been concerned about the stability of the closing price. It suggests that the current volatility is a temporary growing pain rather than a fundamental flaw in the system. Market participants are advised to remain patient as the framework matures and liquidity normalizes over time.
Investors should continue to monitor the volume trends during the closing auction phase. While the structural setup is sound, the effectiveness of the mechanism depends on sustained participation from market makers and institutional players in the coming weeks.
Excerpt from Mint
Sebi chief pointed to other markets where closing auctions initially faced thin liquidity. Countries including the US, Japan and Hong Kong also faced low liquidity when they introduced closing auction sessions (CAS), but liquidity recovered over time, Securities and Exchange Board of India (Sebi) chief Tuhin Kanta…Read the original at Mint
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