Sebi Proposes New Closing Auction Session to Enhance Market Fairness
Sebi has extended the deadline for public comments on its proposal to introduce a closing auction session (CAS) in the equity cash segment. The initiative aims to enhance market transparency, reduce volatility, and facilitate larger trades by implementing CAS initially for highly liquid derivative stocks, with plans for broader application.
- Country:
- India
The Securities and Exchange Board of India (Sebi) has extended the deadline for public feedback on its proposal for introducing a closing auction session (CAS) in the equity cash segment. Originally set for September 12, comments are now due by September 19, 2025.
The move comes after Sebi released a consultation paper on the matter in August, outlining a new framework designed to execute CAS initially for stocks with high liquidity in the derivatives segment. The aim is to improve market fairness, reduce volatility, and aid large and passive investors in executing trades.
If implemented, the CAS would be held from 3:15 pm to 3:35 pm, broken into phases such as reference price calculation and random close, within a 3% price band. Real-time data during CAS, including expected prices and trade imbalances, would enhance trading transparency and decision-making.
- READ MORE ON:
- Sebi
- markets
- auction
- stocks
- liquidity
- equity
- volatility
- trading
- derivatives
- transparency
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