SEBI chief says closing auction here to stay, changes possible

Markets regulator SEBI has ruled out scrapping the newly introduced Closing Auction Session (CAS), which took effect on August 3. Chairman Tuhin Kanta Pandey said on Monday that the CAS is here to stay, but the regulator is open to making improvements based on feedback from brokers, traders and social media. Pandey spoke on the sidelines of a cybersecurity event at the National Institute of Securities Markets.

According to Times Now, Pandey noted that some operational difficulties may ease as participants adapt to the new system, and that continued reliance on legacy processes could prevent them from taking full advantage of the framework. The Times of India reported that traders have complained of huge losses, especially in options trading, due to price swings between 3:15 pm when regular trading stops and 3:30 pm when the CAS price is announced.

NDTV Profit reported, citing sources, that SEBI is planning to allow after-market orders during the 3:15-3:20 pm CAS window to improve participation and price discovery. The change could roll out around September 1. Pandey also said a committee is working on a revamped securities lending and borrowing mechanism, but declined to give a timeline.