Now Reading: Former SEBI Member Seeks Tweaks to New Closing Auction
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Former SEBI Member Seeks Tweaks to New Closing Auction
Former SEBI member Anant Narayan has called for changes to the new closing auction mechanism, saying price dislocations deserve closer attention. He said low auction volumes were not the main concern.
The Story in Brief
Former SEBI member Anant Narayan has called for changes to the new closing auction mechanism, saying price dislocations deserve closer attention. He said low auction volumes were not the main concern.
According to NDTV Profit, Narayan flagged instances where auction prices moved away from the 3:15 p.m. level. He also pointed to signals from the derivatives market. The comments focus on whether the mechanism produces reliable closing prices, rather than simply on how much trading takes place in the auction.
The Indian Opinion
The easy narrative is that low participation alone proves the auction is failing. Narayan’s point is narrower and more useful: price movement away from the 3:15 p.m. level, alongside derivatives signals, may matter more than volume by itself. SEBI should publish comparable data on auction prices, final prices and market indicators before deciding what to change. That evidence will show whether these are isolated dislocations or a recurring flaw.
Source: ndtvprofit.com
This story was synthesised by AI from the source linked above.
