SEBI May Tweak CAS: Are Indian Traders Struggling With Unpredictable Closing Prices?

• SEBI found no CAS manipulation, but participation and price visibility remain concerns.
• Nifty moved 151.45 points after 3:15 p.m., shifting option value by about ₹9,844 per lot.
• Final-window NSE turnover was 1.6%-2.3%, versus a historical 10.1%, Bernstein found.

India’s new closing auction is facing a different test than manipulation: whether traders can reliably predict the price that ultimately settles their exposure. SEBI Chairman Tuhin Kanta Pandey said the regulator has found no manipulation in CAS so far. However, feedback is being considered to improve participation.

At the same time, SEBI has not announced any numerical threshold or formal trigger that would automatically lead to changes in the framework. Earlier regulatory feedback suggested that participation may need time to develop as market participants adjust.

Even so, Pandey has since said the…

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