SEBI Chairman Tuhin Kanta Pandey reiterates continuation of the new Closing Auction Session, replacing the old Volume Weighted Average Price method. Some participants are yet to update their systems.
SEBI Chairman Tuhin Kanta Pandey has confirmed that the new Closing Auction Session (CAS), introduced on August 3, 2026, will be continued. The session replaces the old Volume Weighted Average Price (VWAP) method to improve price discovery and curb late-day price manipulation. Mr. Pandey spoke on the sidelines of the launch of cyber reporting platforms at the National Institute of Securities Markets (NISM).
According to the SEBI chairman, there are no concerns around tracking error, but some participants in the industry have yet to update their systems, which have been built on the historical system and the VWAP system. He further mentioned that SEBI will soon come up with a consultation paper on the securities lending and borrowing mechanism, as part of its efforts to stabilise CAS.
The Closing Auction Session (CAS) is a 20-minute daily auction from 3:15 PM to 3:35 PM that determines the official closing price for F&O-enabled stocks by collecting orders and matching them at a single equilibrium price.
Source:
Akashvani News
