# Closing auction mechanism stabilises, traders adapt to new system 2026-08-13T14:00:43+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 2 independent outlets The new Closing Auction Session (CAS) introduced by market regulator SEBI on August 3 is showing signs of stabilisation, with initial volatility and price differences narrowing significantly. Market expert Sudip Bandyopadhyay told Business Today that the gap between the 3:15 PM close and the final 3:30 PM discovered price has become very small, and traders are gradually getting used to the mechanism as uncertainty fades. CAS replaces the earlier system where closing prices were determined by the Volume Weighted Average Price (VWAP) of the last 30 minutes of trading, which was prone to distortion from large last-minute trades. The 20-minute auction window collects buy and sell orders to find an equilibrium price. The Hindu reports that mutual fund participation in CAS has risen to 25% from 5-7% earlier, according to SEBI chairman Ruhin Kanta Pandey. The new system aligns Indian exchanges with global bourses like NASDAQ, NYSE, and the London Stock Exchange. ## Coverage - businesstoday.in - thehindu.com Tags: BSE, Closing Auction Session, NSE, SEBI, stock market, trading Canonical: https://indianopinion.org/closing-auction-shock-fades-as-traders-adapt-to-new-system/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/closing-auction-shock-fades-as-traders-adapt-to-new-system/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.