Tuhin Kanta Pandey, SEBI Chairman, has emphasized the need for robust capital markets to build investor confidence, improve liquidity in cash markets, and enhance price discovery.
In his address at the 12th International Convention of the Commodity and Capital Market Participants Association of India in New Delhi, SEBI Chairman Tuhin Kanta Pandey highlighted the importance of capital markets capable of mobilizing capital, managing risk, and fostering investor confidence. To achieve this goal, he outlined several key initiatives being undertaken by the Securities and Exchange Board of India (SEBI).
Firstly, SEBI is addressing concerns related to the settlement price framework for derivatives on expiry days following the introduction of the Closing Auction Session – CAS. The mechanism was designed to improve price discovery for eligible stocks at market close by using a call-auction process to determine a single equilibrium price instead of relying solely on volume-weighted average prices.
Secondly, SEBI is working to deepen and improve liquidity in cash markets, expand participation, and strengthen securities borrowing and lending. The regulator believes that efficient hedging and arbitrage can significantly improve price discovery and strengthen the interaction between cash and derivatives markets.
Lastly, SEBI is examining position limits for non-agricultural contracts with the aim of improving market liquidity and depth while maintaining risk controls.
Source:
Akashvani News
