SEBI launches closing auction session to improve India stock closings
SEBI just rolled out the Closing Auction Session (CAS) to shake up how closing prices are set in India's stock markets.
Instead of last-minute trades, there's now a special auction window at the end of each day where market participants can submit buy and sell orders during a dedicated auction period.
SEBI says this move should make things more transparent and stable, and help Indian markets match up with global standards.
Early CAS sessions sparked trader concerns
In its first few sessions, CAS led to some wild price swings: Nifty jumped an average of 0.42% between 3:15pm and 3:30pm including a dramatic more than 200 points leap on day one, while Sensex moved less at about 0.10%.
Some option traders are concerned these quick moves could mess with payouts near key strike prices.
Still, CAS is expected to improve price discovery and make the closing price more transparent, stable and reliable.