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SEBI Chief Defends CAS: Market Rules Must Adapt to Current Realities
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Moneycontrol•24-09-2026, 20:40
SEBI Chief Defends CAS: Market Rules Must Adapt to Current Realities
- •SEBI Chairman Tuhin Kanta Pandey defended the proposed Closing Auction Session (CAS) mechanism, stating market rules need to evolve with changing realities.
- •Pandey emphasized that the proposed framework aims to address shortcomings in the existing system and that SEBI's surveillance systems have improved to support it.
- •The Securities and Exchange Board of India has received over 3,500 comments on its consultation paper, which closes on October 3.
- •Pandey highlighted CAS's importance for passive investing, ensuring a common execution price for transactions.
- •He noted that the previous mechanism used a derived price, unlike CAS which reflects actual transaction prices.
Key Questions Answered
SEBI chairman Tuhin Kanta Pandey stated that the proposed Closing Auction Session (CAS) mechanism is designed to evolve market rules with changing realities and address shortcomings in the existing system, particularly ensuring a single execution price for passive investing.
The consultation paper issued by SEBI on the proposed changes has received over 3,500 comments and is scheduled to close on October 3, after which responses will be analyzed to decide the next steps.
The new Closing Auction Session pools orders to establish an actual transaction execution price, whereas the previous mechanism relied on a derived price that did not represent the price at which any actual transaction took place.
