Neutral impactEconomy
SEBI could have been better prepared for closing auction, says UK Sinha
BusinessLine 11 hrs ago·30 Aug 2026, 8:22 am
Former SEBI Chairman UK Sinha has suggested that the market regulator could have been better prepared for the closing auction session. This mechanism was introduced to improve price discovery and reduce volatility during the final minutes of trading. However, its implementation has faced some teething issues, leading to concerns among market participants about its effectiveness.
For investors, this development highlights the importance of understanding the new trading rules. While the closing auction is intended to stabilise the market, its current challenges may cause temporary disruptions. It is crucial for investors to stay informed and adapt their strategies accordingly.
Moving forward, investors should watch for any further guidance from SEBI regarding the closing auction. Adjustments to the rules or additional support measures could help address the current concerns and ensure smoother market operations.
Excerpt from BusinessLine
Former Securities and Exchange Board of India (SEBI) chairman UK Sinha said the market regulator could have been better prepared before rolling out the closing auction session (CAS), as the new market mechanism faces concerns over liquidity and sharp price swings. “Better preparation, consultation, and beta testing…Read the original at BusinessLine
Key takeaways
- Category: Economy.
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