BSEs new Closing Auction Session has faced weak participation, with Nuvama reporting sharp declines in option premium volumes and contracts. Thin liquidity is creating a self-reinforcing cycle, while early confusion, retail concerns and alleged CAS manipulation have further intensified scrutiny of the new closing-price mechanism.

MUMBAI: The first Sebi order relating to the recently introduced Closing Auction Session (CAS) system showed how, using money power, large institutions could manipulate the system…

BSEs new Closing Auction Session has faced weak participation, with Nuvama reporting sharp declines in option premium volumes and contracts. Thin liquidity is creating a…