The Securities and Exchange Board of India (SEBI) introduced the Closing Auction Session (CAS) to determine closing prices for stocks in the futures and options market, aiming to curb price manipulation and improve market transparency. On Thursday, SEBI Chairman Tuhin Kanta Pandey addressed a media briefing, confirming that CAS will remain in force and will be refined rather than rolled back. He emphasized that the board is actively reviewing the mechanism to address concerns raised by market participants.
Retail investors have felt the impact as the CAS has sometimes produced price gaps, leading to losses for positions held overnight. The decision to keep the system signals stability for the Nifty and Sensex, but also highlights the need for investors to monitor closing prices closely before making intraday trades. Going forward, SEBI plans to introduce additional safeguards, such as tighter volatility limits and clearer communication of closing price methodology.
Investors should stay informed about the forthcoming updates and consider adjusting their intraday strategies to mitigate potential adverse price swings.