Now Reading: Retail traders call for Aug 12 boycott over new closing auction system
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Retail traders call for Aug 12 boycott over new closing auction system
Retail traders call for Aug 12 boycott over new closing auction system
Retail traders have called for a one-day boycott of stock market trading on August 12 to protest the introduction of the Closing Auction Session (CAS) by the Securities and Exchange Board of…
The Story in Brief
Retail traders have called for a one-day boycott of stock market trading on August 12 to protest the introduction of the Closing Auction Session (CAS) by the Securities and Exchange Board of India (SEBI). A social media post with nearly 1.5 lakh followers urged a 'no trade day' against CAS and the securities transaction tax (STT), while another with over 15,000 followers cited rising taxes and regulations hurting retail traders.
SEBI introduced CAS on August 3 for about 200 stocks traded in derivatives, replacing the earlier volume-weighted average price (VWAP) method. Regulators say it improves benchmark reliability and reduces manipulation, but traders allege it has caused wide divergence between the Nifty and Sensex indices and led to substantial losses from unusual closing price swings.
The Indian Opinion
Some narratives paint this as a battle of small traders against a regulator rigging the market for big players. But SEBI's CAS aims to curb precisely the kind of manipulation that hurts retail most: end-of-day price fiddling. If the real goal is fairer prices, traders should test the system's integrity by checking if the new closing prices lead to better, not worse, trade execution over the next month. One week of data will settle more than any single-day protest.
Sources (2): timesofindia.indiatimes.com, businesstoday.in
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
