SEBI’s CAS will help detect market manipulators, vows “strict action”
SEBI Chairperson Tuhin Kanta Pandey announced that a new Closing Auction Session mechanism will be used to better detect and penalize market manipulation. The regulator also plans to overhaul IPO frameworks for small and medium enterprises to improve market integrity.
Why it matters
Enhanced regulatory oversight in financial markets is essential for protecting retail investors and maintaining market stability.
The newly introduced Closing Auction Session (CAS) mechanism for determining stock market closing prices will strengthen Securities and Exchange Board of India’s (SEBI’s) ability to detect and act against market manipulation, its Chairperson Tuhin Kanta Pandey said on Wednesday.
Speaking at a FICCI Capital Markets event in Mumbai, Pandey said the regulator would take swift and strict action against attempts to manipulate prices during the CAS.
“We want to make one thing clear, that if people do manipulation in CAS, then we will take strict action and do it immediately,” Pandey said. He added that the CAS mechanism provides SEBI with greater capabilities to identify manipulation compared with the earlier Volume Weighted Average Price (VWAP)-based system.
SEBI is set to release its study on retail and non-retail participation in the derivatives market for 2025-26 on August 20, Pandey said.
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