Market regulator Sebi will soon issue a framework on proposed changes to the Closing Auction Session (CAS) mechanism after receiving more than 3,500 comments on its consultation paper, its Chairman Tuhin Kanta Pandey said on Saturday.
Consultation Process
The Securities and Exchange Board of India (Sebi) had sought public comments on its proposal to review certain aspects of the CAS, market timings, and the settlement methodology for derivative contracts. The deadline for submitting comments was October 3.
When asked about the timeline for the final framework or circular on CAS, Pandey stated that the regulator would quickly examine the responses and proceed with the process. He remarked:
“"Today is the last date, and we will actually quickly look at all these comments and go ahead, because I think our proposals are quite clear."
Proposed Changes
In September, Sebi proposed changes to the CAS framework and the methodology for determining settlement prices of index and stock derivatives on expiry days. This review followed the rollout of the CAS in the equity cash segment and concerns over its impact on derivatives settlement prices. The CAS aims to determine closing prices through an auction process.
