What happened
SEBI Chairperson Tuhin Kanta Pandey stated that SEBI’s Closing Auction Session (CAS) mechanism for determining stock closing prices will strengthen SEBI’s ability to identify and act against market manipulation. Speaking at a FICCI Capital Markets event, he said SEBI will take swift and strict action if market manipulation occurs during CAS.
SEBI Chairperson Tuhin Kanta Pandey also compared CAS with the earlier Volume Weighted Average Price (VWAP) system, asserting that CAS provides greater capabilities to identify manipulation.
Separately, SEBI Chairperson Tuhin Kanta Pandey said SEBI is scheduled to release a study on retail and non-retail participation in the derivatives market for 2025–26 on August 20.
Background and earlier position
Before CAS, SEBI’s closing price discovery relied on the VWAP (Volume Weighted Average Price) system. VWAP is a method that computes an average price using traded volumes, and it has been used for price discovery in markets where closing-price calculations matter for settlement and broader market reference.
Related current affairs
- SEBI fines two firms ₹3.7 crore for CAS manipulation
- Big brokerages to show post-CAS indicative close by August 14
- SEBI pulls up Dhenu Buildcon over round-tripping charges
- CAS here to stay, but open to review for improvement: SEBI (Tuhin Kanta Pandey)
- SBI closes employee offer/other corporate brief (unreadable)
- Offer Price / Offer Period / Issue Terms tables (Equity shares of ABG Shipyard Ltd IPO listing disclosures)