SEBI Chairman says Closing Auction Session to be continued as industry participants welcomed the move

 
Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has reiterated that the new Closing Auction Session (CAS), introduced from August 3 will be continued. Speaking on the sidelines of the launch of cyber reporting platforms at the National Institute of Securities Markets (NISM), Mr. Pandey said the regulator would consider suggestions from the industry and make changes wherever necessary.
 
The Closing Auction Session (CAS) is a 20-minute daily auction (3:15 PM to 3:35 PM) introduced by SEBI on August 3, 2026. It determines the official closing price for F&O-enabled stocks by collecting orders and matching them at a single equilibrium price. The session replaces the old Volume Weighted Average Price (VWAP) method to improve price discovery and curb late-day price manipulation.
 
The Sebi chief added that there are no concerns around tracking error and that several participants in the industry have welcomed the move. He added some participants are yet to update their own systems, which have been built on the historical system and the VWAP system. He further noted that SEBI will soon come up with a consultation paper on the securities lending and borrowing mechanism, in its efforts to stabilise CAS.