‘CAS here to stay’: Sebi chief Pandey says auction system won’t be rolled back
Sebi chairman Tuhin Kanta Pandey affirmed the continuation of the Closing Auction Session, emphasizing ongoing evaluations concerning market participants' worries and potential framework enhancements. He pointed out that as more participants engage with the new system, certain challenges may diminish. Furthermore, he observed that reliance on outdated processes inhibits the effective utilization…
Sebi chairman Tuhin Kanta Pandey has stated that the regulator has no plans to revert the recently introduced Closing Auction Session (CAS), despite concerns raised by market participants about issues they faced with the new system. Introduced on August 3, CAS has drawn attention due to challenges reported by some market participants, with several concerns raised on social media as well.
Pandey told reporters that Sebi is examining the feedback but does not yet have any specific changes in mind. He emphasized that CAS is here to stay and that the regulator will explore ways to improve the framework if necessary. CAS represents a major reform in the markets, and Sebi has objectives it aims to achieve through this framework.
Some of the difficulties reported by participants might decrease as more users start utilizing CAS, according to Pandey. Additionally, several participants still rely on systems based on the older volume-weighted average price framework, which prevents them from benefiting from CAS.
Pandey also questioned whether market participants had invested enough effort in familiarizing themselves with the new system. He noted that when a change has been in place for years, participants may feel that change is unlikely. "We do not put in energy into learning a new system," the regulator said.
Sebi has received congratulatory messages from various stakeholders for introducing CAS.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
