SEBI plans to introduce closing auction session for derivative stocks
SEBI is planning to introduce a Closing Auction Session (CAS) for derivative stocks, aiming to make closing prices more straightforward and less confusing.
The move is meant to help passive funds (like index funds) that currently deal with a mix of different pricing methods at the end of each trading day.
If CAS works well for derivatives, SEBI might roll it out for all stocks later.
SEBI aims to streamline the process for passive funds
Right now, passive funds have to juggle both the Volume Weighted Average Price (VWAP) and auction-based closing prices, depending on which stocks they hold—making things messy behind the scenes.
By expanding CAS to all highly traded stocks, SEBI hopes to create one clear system, making life easier for fund managers and helping investors get more consistent closing prices.