Mumbai, August 12, 2026 (Yes Punjab News)
The Securities and Exchange Board of India (SEBI) has found no evidence of manipulation in the newly introduced closing auction session (CAS), SEBI Chairman Tuhin Kanta Pandey said on Wednesday, amid concerns raised by some market participants over the new mechanism.
Speaking at an event in Mumbai, Pandey described CAS as a significant market-structure reform aimed at bringing Indian stock markets closer to global practices. He said the regulator was examining feedback from stakeholders and considering ways to encourage greater participation.
“CAS is a very big microstructure reform, and we are actually behind it. Many of our global counterparts have already done it. Japan did it in 2024. Hong Kong has done it. It is in the US, in Germany, in Europe, and in Australia,” Pandey said.
He stressed the importance of reliable closing prices for index-based passive investments and mutual fund net asset value (NAV) calculations.
Pandey said greater awareness among market participants and increased participation by brokers would help the mechanism function more effectively.
“CAS is a transparent market; its pricing is always visible, what is happening inside it is visible, and finally, it makes a price,” he said, adding that SEBI was engaging with various stakeholders and considering their feedback.
The closing auction mechanism was introduced by stock exchanges last week through a dedicated 20-minute session in which buy and sell orders are collected and matched to determine a stock’s closing price.
Under the new system, the closing price is discovered at the level where the maximum executable volume can be matched. It replaces the earlier method of calculating closing prices based on the weighted average of trades executed during the final 30 minutes of regular market hours.
Regulators and exchanges have said the revised mechanism is intended to make price discovery fairer, more transparent and efficient, particularly for large institutional trades.
FOLLOW NOW
