Sebi chairman Tuhin Kanta Pandey backs CAS despite trader discontent
Sebi chairman Tuhin Kanta Pandey is backing the recently launched closing auction session (CAS) in India's stock markets, even as some traders are not happy.
CAS, which kicked off on August 3, brings all buy and sell orders together for a dedicated end-of-day window at the end of each trading day to set a fair price.
While some have complained about low trading volumes and sharp price swings, Pandey says CAS helps with better price discovery and aligns Indian markets with global practices: "We cannot just put out this thing (CAS) on this issue just because some people want to do options trading in the way they want to do options trading,"
VWAP replaced for 208 derivative stocks
CAS replaced the old volume-weighted average price system, or VWAP, for 208 derivative-traded stocks.
Its debut saw high volatility (Nifty 50 even jumped 1.6% in a last-minute spike), but Sebi has not found any signs of market manipulation so far.
The regulator is now looking at ways to improve liquidity and tweak the Securities Lending and Borrowing Mechanism (SLBM) to make CAS work more smoothly alongside derivatives.