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Sebi chief says no wrongdoing spotted in India closing auctions yet
SEBI chairman Tuhin Kanta Pandey said mutual fund participation in closing auction sessions rose to nearly 25% from 5% to 7% earlier.
India’s market regulator has not observed wrongdoing in closing auction sessions for stocks introduced to improve price discovery and reduce manipulation, Securities and Exchange Board of India chairman Tuhin Kanta Pandey said Wednesday.
Pandey said SEBI is “constantly checking” data, adding that participation is rising. He noted mutual fund participation in the closing auctions was previously about 5% to 7%, and is now close to 25%.
India’s first closing auction session for 208 derivative-traded stocks began on 3 August, replacing the prior volume-weighted average price system. Pandey spoke as criticism has grown from market participants about the new mechanism, including sharp price moves tied to low liquidity.
He pointed to early divergence in major indexes, saying that on the first day of CAS the NSE Nifty50 rose 1.6% while the BSE Sensex gained 0.7%. Pandey also argued CAS is not a “black box,” noting it provides indicative prices for the 15 minutes and called for greater participation to help more traders understand the framework.
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