Mumbai, August 17, 2026 (Yes Punjab News)
The Securities and Exchange Board of India (SEBI) is reviewing concerns and suggestions raised by traders and other market participants over the new Closing Auction Session (CAS) for futures and options (F&O)-eligible stocks, but the mechanism will remain in place, SEBI Chairman Tuhin Kanta Pandey said on Monday.
Pandey said the regulator is examining feedback from market participants, discussions on social media and data related to expiry dates to determine whether any changes are needed to improve the system.
“CAS is here to stay. If there are issues that can be improved, they will be done soon,” he said.
The CAS came into effect on August 3 as part of SEBI’s revised mechanism for determining closing prices of F&O-eligible stocks. Under the new system, continuous trading in these stocks ends at 3:15 p.m., followed by a closing auction in which orders are matched and the resulting price becomes the official closing price.
Non-F&O stocks continue to trade until 3:30 p.m., while stock and index derivatives remain open until 3:40 p.m.
Pandey said SEBI was engaging with market participants to understand concerns surrounding the new mechanism and would take a decision after analysing the feedback.
“We are talking to participants on the concerns. We are analysing the issues and will soon come with a view,” he said.
The SEBI chief said it was still too early to assess the overall response to CAS, as market participants were still adapting to the new process.
“It is too early to say response of participants on CAS,” Pandey said, adding that the regulator would need more time to evaluate its functioning.
SEBI is also examining data related to expiry dates as part of its assessment. Pandey said the regulator had so far not identified any concerns relating to tracking errors under the CAS mechanism.
“There are no concerns around tracking errors in CAS,” he said.
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