Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey addressing the 23rd Annual Capital Markets Conference, in Mumbai
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PTI
The Securities and Exchange Board of India (SEBI) would take strict and immediate action against any attempt to manipulate the Closing Auction Session (CAS) to defame it, said Chairman Tuhin Kanta Pandey.
“We want to make one thing clear, that if people do manipulation in CAS, then we will take strict action and do it immediately…if someone thinks they will manipulate CAS to defame it, they are mistaken,” Pandey said on the sidelines of the FICCI Capital Markets Conference.
Greater transparency
The CAS system has more transparency than the earlier VWAP-based system and it gives the regulator greater capability to detect manipulation.
Further, the regulator is looking at the constraints of participation. The mutual funds and prop traders have increased participation, he said.
SEBI has also asked brokers to start accepting after-market orders (AMOs) during the five-minute transition period before CAS between 3:15 pm and 3:20 pm to improve liquidity, said people aware of the discussions.
This would require technological changes to the brokers’ trading systems and processes, which are at different stages for different brokers, they said.
“Starting September, we should be able to start accepting AMO orders between 3:15 and 3:20 pm to help in price discovery,” said Dhiraj Relli, managing director and chief executive officer at HDFC Securities.
The CAS is a 20-minute auction window that begins at 3:15 pm after continuous trading ends and is used to determine the closing levels of F&O stocks through order matching.
Currently, orders are not taken from 3:15 pm to 3:20 pm. These initial five minutes are set aside to calculate reference prices and transition from regular trading to CAS.
The move is aimed at improving participation and price discovery during the newly introduced closing auction mechanism.
Published on August 19, 2026
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