Sebi Chief: Initial Liquidity Issues with CAS Seen Across Global Markets
Sebi will keep the Closing Auction Session and plans a consultation paper on settlement price changes after global markets reported lower early liquidity.
- On Thursday, Sebi chairman Tuhin Kanta Pandey stated that global markets faced initial liquidity issues with the Closing Auction Session , reiterating the mechanism is "here to stay" despite planned settlement price adjustments.
- Market participants noted initial liquidity challenges during CAS rollouts in Japan and Hong Kong. Pandey stated, "The issue is whether we just keep on waiting or we can have some temporary solutions."
- Pandey noted that participants praised the CAS implementation and MSCI rebalancing, though some market segments face impacts because settlement price was kept "completely dependent."
- Sebi is actively using Artificial Intelligence tools, including 'Sudarsan' and 'RDAR', to monitor social media, intermediary advertisements, and cybersecurity controls through the Cybersecurity Audit Compliance Portal .
- Pandey added that Artificial Intelligence allows Supervision to move from periodic to proactive, near real-time monitoring, emphasizing oversight must be "competent, empowered, and accountable" to prevent systemic vulnerabilities.
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Sebi Chief: Initial Liquidity Issues with CAS Seen Across Global Markets
Sebi chairman Tuhin Kanta Pandey acknowledged that all global jurisdictions experienced lower liquidity during the initial implementation phases of the closing auction session (CAS), a stock price determination framework introduced in India on August 3.
Mumbai, Sep 12 (IANS) The Securities and Exchange Board of India (SEBI) is expected to release a consultation paper on Closing Auction Session (CAS) on Saturday. The regulator is expected to propose changes to the current process for determining the settlement price of derivative contracts, according to a report. According to an NDTV Profit report, the proposal is likely to be discussed at the SEBI board meeting on September 24. It will address…
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