# SEBI chief says closing auction here to stay, reviewing concerns 2026-08-17T07:51:07+00:00 | Governance | Indian Opinion Desk Corroboration: 2 independent outlets (3 source reports) Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey has said the closing auction session (CAS) for securities markets is "here to stay for sure", even as the new mechanism faces criticism over low liquidity and sharp price swings. Speaking at an event on Monday, Pandey said the regulator would examine and address constraints but ruled out abandoning it because some market participants want to trade options differently. "We cannot just put out this thing (CAS) on this issue just because some people want to do options trading in the way they want to do options trading," the SEBI chief said. CAS, introduced on 3 August, covers 208 derivative-traded stocks and replaced the volume-weighted average price system for determining closing prices. On its debut, the Nifty50 surged 1.6%, compared with a 0.7% gain in the Sensex, driven by a 200-point jump in the final two minutes. Livemint reports that most domestic traders and retail investors have stepped aside from the CAS window, making it the leanest trading period of the day. Pandey said last week that SEBI had found no signs of manipulation in CAS so far. Pandey also said SEBI's consultation paper on the securities lending and borrowing mechanism (SLBM) is expected "very soon". The regulator has formed a working group to revamp the framework, nearly two decades after its introduction, to better link cash equities and derivatives. Greater participation in SLBM will help improve liquidity in CAS too, Pandey added. ## Coverage - ndtvprofit.com - ndtvprofit.com (2) - livemint.com This story was synthesised by AI from the 3 sources linked above. Updated: this story now draws on 3 sources. Last updated 2026-08-17T09:26:29+00:00. Tags: closing auction mechanism, SEBI, Tuhin Kanta Pandey Canonical: https://indianopinion.org/sebi-says-closing-auction-system-is-here-to-stay/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/sebi-says-closing-auction-system-is-here-to-stay/#story-in-brief How this brief was made: an AI model read the reports linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. Stance labels are editorial classifications of how each outlet framed this story, assigned by the same model, not ratings of the outlets. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/