Sebi sees no CAS manipulation, eyes more participation
In a recent statement, Sebi chairman Tuhin Kanta Pandey confirmed that the closing auction sessions showed no manipulation. He linked earlier discrepancies to cautious trading in the newly implemented system. Notably, mutual funds have significantly increased activity in these sessions. Additionally, Sebi is looking into strategies to bolster both participation and liquidity in commodity…
The Securities and Exchange Board of India (Sebi) has observed no manipulation in the newly introduced closing auction sessions (CAS), chairman Tuhin Kanta Pandey stated on Wednesday. Pandey suggested that the recent divergence in two major indices, the Sensex and Nifty, was due to cautious trader participation in the initial days of the new system.
Sebi is considering various inputs to boost participation in CAS, which was introduced on August 3. The CAS has brought about significant market structure reforms and is in line with global practices, according to Pandey. However, the new system has raised concerns over its impact on market participants. Closing prices, which are used to determine index levels, fund portfolios and settle derivative contracts, are now calculated through an auction process lasting around 20 minutes, from 3:15 pm to around 3:35 pm.
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- Sebi sees no manipulation in new CAS despite participation concerns economictimes.indiatimes.com
