Sebi to finalize Closing Auction Session framework after receiving 3,500+ comments

At an event hosted by the Commodity & Capital Market Participants Association of India, Sebi chairman Tuhin Kanta Pandey indicated that the securities regulator will soon publish a detailed framework for the proposed reforms to the Closing Auction Session (CAS). The regulator had sought public input on adjustments to CAS, market trading hours and the settlement methodology for index and stock derivatives, receiving over 3,500 comments by the October 3 deadline.

Pandey said the regulator will swiftly examine the submissions and issue a circular, noting that the proposals are clearly defined. The CAS review was prompted by the recent rollout of the auction in the cash equity segment and worries about its effect on derivative settlement prices. He also discussed initiatives to grow the corporate bond derivatives market and to simplify onboarding for foreign portfolio investors, in coordination with the Reserve Bank of India.