SEBI says Closing Auction Session will stay, but tweaks are under review

At a cybersecurity conference hosted by the National Institute of Securities Markets, SEBI chairman Tuhin Kanta Pandey stated that the Closing Auction Session, launched earlier this year, will stay operational. He explained that the board is assessing a range of criticisms and suggestions from market participants, many of which have appeared on social media platforms. While no concrete changes have been announced, Pandey indicated that the regulator aims to address any constraints that emerge.

He also suggested that some of the reported difficulties could lessen as users become more familiar with the system, noting that reliance on the legacy volume-weighted average price approach limits access to CAS benefits. The chairman recalled that similar auction mechanisms exist in other countries and praised stakeholders who have congratulated SEBI on the reform.