Stories
SEBI Considers Suspending CAS System For F&O Trading
N
News18•06-10-2026, 12:47
SEBI Considers Suspending CAS System For F&O Trading
- •SEBI is considering a one-year suspension of the Closing Auction Session system for Futures and Options traders.
- •Thousands of traders suffered massive losses due to extreme price fluctuations in the final minutes of trading on expiry days.
- •Over 20000 complaints were filed with SEBI regarding the chaos caused by the new system introduced in August.
- •SEBI plans to revert to the old Volume-Weighted Average Price formula using the last 30 minutes before market close.
- •The move aims to protect traders from sudden price manipulation and crashes after 3:15 PM on expiry days.
Key Questions Answered
SEBI is considering suspending the Closing Auction Session (CAS) system for one year because thousands of traders suffered heavy financial losses due to uncontrolled price fluctuations and triggered stop losses during expiry days under the new mechanism, leading to over 20,000 complaints.
SEBI plans to revert to the old and reliable Volume-Weighted Average Price (VWAP) formula, where the 30-minute average price before market close will be used for F&O settlement to prevent single-minute price manipulation.
SEBI originally introduced the new Closing Auction Session system in the Indian F&O market in August of this year, following the model used in the US and Hong Kong.
