Sebi CAS for 213 stocks forces iNAVs 15-second lag
Sebi just rolled out a new closing auction session (CAS) for 213 derivative-traded stocks on August 3, 2026, aiming to set their end-of-day prices with one final auction.
But this has thrown off the value calculations for ETFs that mix CAS and non-CAS stocks, so their real-time values (iNAVs) can become distorted and must be updated with a maximum 15-second lag from the underlying market.
CAS unpredictability disrupts ETF pricing
ETFs like SBI Nifty Smallcap, which hold both types of stocks (think Delhivery and Sona BLW), see their iNAVs get distorted after 3:15pm
This makes pricing less transparent, and can put off traders during that window.
Market makers are struggling too, since CAS does not provide predictable trading prices, which makes it difficult for market makers to place quotes and the AMC cannot execute the underlying basket of securities as 100% fill, making ETF creation and redemption trickier, and putting a constraint on the market maker on the quantum of liquidity they can provide.
India's ETF assets need fixes
With ETF assets in India hitting ₹11.71 trillion by July 2026, fixing these pricing hiccups is crucial to keep things stable and maintain investor trust.
The split in trading hours (CAS stocks stop at 3:15pm while others go till 3:30 p.m.) only adds to the confusion.