SEBI starts closing auction on Indian stock exchanges August 3
Starting August 3, SEBI is rolling out a new Closing Auction Session (CAS) on Indian stock exchanges.
Instead of using the old VWAP method, the market will now have a 20-minute auction from 3:15pm to 3:35pm where buy and sell orders are matched to set the official closing price.
This is all about making things fairer and more transparent for everyone trading.
CAS disables stop-loss and iceberg orders
The CAS aims to reduce the risk of end-of-day price manipulation and give more accurate benchmarks for indices, derivatives, and mutual funds.
With this update, stop-loss and iceberg orders won't work during the session, so traders need to tweak their strategies a bit.
Brokers also have to keep clients in the loop about these changes.
By switching things up, India's markets are aligning with global standards like NYSE and Nasdaq for better transparency.