The Securities and Exchange Board of India (SEBI) Chairman, Tuhin Kanta Pandey, has confirmed the continuation of the newly introduced Closing Auction Session (CAS), set to begin on August 3, 2026. The CAS aims to enhance price discovery and curb late-day price manipulation.
During a launch event for cyber reporting platforms at the National Institute of Securities Markets (NISM), Mr. Pandey affirmed that the Closing Auction Session (CAS) will persist as initially planned, with SEBI willing to make adjustments based on industry feedback.
The CAS is scheduled for a 20-minute daily auction from 3:15 PM to 3:35 PM, effective August 3, 2026. This session serves to ascertain the official closing price for F&O-enabled stocks by aggregating and harmonizing orders at a single equilibrium price. The CAS replaces the previous Volume Weighted Average Price (VWAP) method in an attempt to boost price discovery and minimize late-day price manipulation.
Additionally, Mr. Pandey assured that there are no tracking error concerns with the implementation of the CAS. Several industry participants have welcomed this change; however, some are still updating their systems that were previously built on the historical system and VWAP method.
Source:
Akashvani News
