Now Reading: Sebi chief says no closing auction manipulation, seeks higher participation
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Sebi chief says no closing auction manipulation, seeks higher participation
Sebi chief says no closing auction manipulation, seeks higher participation
Sebi chairman Tuhin Kanta Pandey said on Wednesday that the regulator has not observed any manipulation in the new closing auction sessions (CAS) introduced on August 3. He attributed the sharp divergence…
The Story in Brief
Sebi chairman Tuhin Kanta Pandey said on Wednesday that the regulator has not observed any manipulation in the new closing auction sessions (CAS) introduced on August 3. He attributed the sharp divergence between Nifty and Sensex on the first day to low participation. Mutual fund participation in CAS has risen from 5-7% to about 25%, and Sebi is considering inputs to boost overall involvement. Pandey also flagged continuing losses among retail options traders, especially on expiry days, and said Sebi is preparing a detailed analytical report. On commodity derivatives, Sebi has proposed allowing FPIs and mutual funds, and approached the GST Council to simplify taxation of physical deliveries under an IGST model.
The Indian Opinion
Traders crying 'manipulation' and calling for a boycott are jumping the gun. Sebi's own data shows zero evidence of wrongdoing so far. The real problem is thin participation, mutual funds have stepped up, but arbitrageurs and retail are still missing. Blaming the system before giving it time is lazy. The index divergence on day one was a liquidity blip, not a conspiracy. The concrete test: will August's index-futures volumes, which fell 40% in the first week, recover as more players learn the auction? If not, the blame shifts from Sebi to market apathy.
Sources (2): livemint.com, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
