Mumbai, September 15, 2026 (Yes Punjab News)
Indian equity markets witnessed sharp volatility during Tuesday’s futures and options (F&O) expiry session, extending a trend seen since the introduction of the Closing Auction Session (CAS) framework.
During the indicative closing period, the Nifty plunged to an intraday low of 22,879, marking a decline of 2.2 per cent. The Bank Nifty also came under heavy pressure, falling more than 1,400 points to 55,196, down over 2 per cent.
Both indices recovered part of their losses before the final close. The Nifty settled 279.5 points, or 1.2 per cent, lower at 23,118.6, while the Bank Nifty closed at 55,794.75, down 811.8 points, or 1.43 per cent.
The Sensex also ended sharply lower at 74,003.82, shedding 777.94 points, or 1.04 per cent.
The CAS framework was introduced on August 3 for stocks that have futures and options contracts. Under the system, a short auction is conducted at the end of the trading session to determine the closing price of stocks.
Since its introduction, market participants have reported heightened volatility in derivatives prices on expiry days, particularly during the closing auction period.
The sharp price swings have prompted the Securities and Exchange Board of India (SEBI) to review the mechanism and examine ways to reduce volatility arising from expiry-day settlement prices.
SEBI Chairman Tuhin Kanta Pandey said earlier in September that the regulator was reworking the methodology used to determine closing prices under the recently introduced CAS for derivatives contracts on expiry days.
Pandey also acknowledged that the implementation of CAS across jurisdictions had faced initial challenges, particularly related to liquidity.
However, he made it clear that the CAS framework would remain in place, noting that while liquidity was initially an issue following its implementation, it would build up over time.
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