India’s closing auction needs funds to show up
On August 3, India launched the closing auction session (CAS) mechanism, a market structure reform following global standards. The final daily stock price is now determined by pooling all orders placed between 3.20 pm and 3.30 pm, and establishing a single closing price based on the highest volume clearing point. This mechanism aims to lower trading costs, enhance price discovery, and make capital raising more affordable for companies. However, the key to its success lies in broad participation, which is currently voluntary.
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