SEBI likely to partly reverse CAS rules? BSE, NSE, other capital market stocks rise up to 3%
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓BSE, NSE, and other capital market stocks rose up to 3% on October 6.
- ✓This happened after reports said SEBI might stop using closing auctions for derivatives settlement prices.
- ✓The regulator got many suggestions to tweak these rules.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Moneycontrol.com
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
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BSE, NSE, other capital market stocks rose up to 3% on October 6 after a report said markets regulator SEBI is likely to stop using closing auctions to calculate derivatives settlement prices for at least a year.
The Securities and Exchange Board of India in August introduced a new mechanism called the closing auction session, or CAS, for stocks that have futures and options contracts linked to them.
Under this system, a short auction at the end of the trading day helps determine the closing price of a stock. The new process, similar to that used in global markets including the US and Hong Kong, has led to sharp swings in derivatives prices on expiry days, prompting the regulator to review it.
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