SEBI to soon issue framework on Closing Auction Session; receives over 3,500 comments
Asked when the final framework or circular on CAS can be expected, Pandey said the regulator would quickly examine the responses and move ahead with the process
Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey announced on Saturday that the regulator will soon issue a framework on proposed changes to the Closing Auction Session (CAS) mechanism. SEBI had received over 3,500 comments on its consultation paper, which sought public input on reviewing certain aspects of the CAS, including market timings and settlement methodology for derivative contracts.
The deadline for submitting comments was October 3, and Pandey stated that the regulator would quickly examine the responses and move forward with the process. The CAS aims to determine closing prices through an auction process. SEBI proposed changes to the CAS framework and settlement price determination methodology in September, following concerns over its impact on derivatives settlement prices.
Pandey emphasized that the review process was designed to address specific issues while seeking market participants' views on various solutions. Additionally, Pandey discussed the development of the corporate bond derivatives market, highlighting the importance of regulatory enablement, technical infrastructure, and market participation.
He expressed SEBI's commitment to promoting exchange-traded systems in the bond market and facilitating easier onboarding and access for foreign portfolio investors (FPIs).
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Also reported by 2 other outlets
- Sebi to soon issue framework on Closing Auction Session; receives over 3,500 comments economictimes.indiatimes.com
- Sebi to soon issue framework on CAS; receives over 3,500 comments business-standard.com
