Strict and immediate action against those who manipulate CAS: SEBI chief
Brokers have been asked to allow after-market orders from 3:15 pm to 3:20 pm from September
SEBI's Chairman, Tuhin Kanta Pandey, has warned of strict and immediate action against anyone attempting to manipulate the Closing Auction Session (CAS). Pandey emphasized that SEBI wants to make it clear that they will take swift action if manipulation is detected with the intent to defame the regulator. The CAS system, which has greater transparency than the older VWAP-based system, provides the regulator with enhanced capabilities to detect manipulation.
SEBI is also considering constraints on participation, noting that mutual funds and prop traders have shown increased involvement. To boost liquidity, SEBI has encouraged brokers to begin accepting after-market orders (AMOs) during the five-minute transition period before CAS, which occurs between 3:15 pm and 3:20 pm. This change requires technological upgrades to brokers' trading systems and processes, which are progressing at varying paces among different brokers.
Starting from September, SEBI aims to enable the acceptance of AMO orders within the 3:15 to 3:20 pm window to enhance price discovery during the closing auction mechanism.
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- SEBI chief says manipulation of closing auction session will face stern action thehindubusinessline.com
