Sebi chief Tuhin Kanta Pandey says CAS here to stay, will study concerns over rollout
Economic Times 36 min ago·17 Aug 2026, 7:02 am
Sebi Chairman Tuhin Kanta Pandey has confirmed that the Closing Auction Session (CAS) will remain a permanent feature of Indian stock market operations. Introduced on August 3, this mechanism consolidates all buy and sell orders at the end of the trading day to determine the final settlement price. Pandey stated that while the regulator is actively reviewing concerns regarding its implementation, there is no evidence of market manipulation.
For investors, CAS can lead to sharp price swings in the final minutes of trading. This volatility is particularly noticeable in index options, where Bernstein analysts predict near-term pressure on volumes. While the system is designed to improve price discovery, retail investors should remain cautious of sudden moves in the market's last few minutes.
Moving forward, Sebi will focus on addressing technical glitches and legacy system challenges. Investors should watch for updates on how the regulator plans to refine the process to ensure smoother trading. The focus remains on maintaining market integrity while adapting to this new trading structure.
Key takeaways
- Category: Economy.
- Flagged as a high-impact, market-moving story.
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