Now Reading: SEBI reviews first week of CAS trading for market manipulation
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SEBI reviews first week of CAS trading for market manipulation
SEBI is reviewing the first week of trading under the new CAS (Call Auction System) mechanism for possible market manipulation, sources told NDTV Profit. The regulator is specifically examining whether low liquidity…
The Story in Brief
SEBI is reviewing the first week of trading under the new CAS (Call Auction System) mechanism for possible market manipulation, sources told NDTV Profit. The regulator is specifically examining whether low liquidity in the initial days made the closing auction more vulnerable to attempts to influence prices. The review comes as market participants adjust to the new system, which was introduced to improve price discovery.
The Indian Opinion
The usual chorus blaming SEBI for every new mechanism's teething troubles is already audible. But the real test is whether the regulator's review addresses the structural vulnerability of low liquidity in the closing auction, not just the first week's aberrations. If SEBI finds no deliberate manipulation, the question becomes: can the system be redesigned to make it less prone to influence when volumes are thin? That answer will matter more than finger-pointing.
Source: ndtvprofit.com
This story was synthesised by AI from the source linked above.
