GENERAL10 Sept 2026
India’s CAS liquidity concerns not unique, says Sebi chief | Stock Market News
From 3 August, India uses closing auction sessions (CAS) to fix derivative closing prices, but the last 15 minutes see thin liquidity. Sebi's chief says the US, Japan and Hong Kong also saw this at first, and liquidity builds up over time. Sebi will soon consult on settlement prices. Traders should watch that paper before changing expiry-day plans.
Key Statutory Highlights
- Sebi introduced the CAS framework on 3 August, and it has faced low participation and thin liquidity during the last 15 minutes of trading.
- Sebi chief Tuhin Kanta Pandey said the US, Japan and Hong Kong also faced low liquidity when they introduced closing auctions, and it builds up over time.
- On 3 September, Sebi said it would issue a consultation paper to review how settlement prices for derivative contracts are determined.
Actionable Advice for Taxpayers / Founders:Keep an eye out for Sebi's upcoming consultation paper on how derivative settlement prices are decided, and check with your broker before making big expiry-day trades, since the rules may change.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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