Capital market stocks saw gains Friday after regulator Sebi's circular on the Closing Auction Session mechanism. Trader pushback against CAS-linked settlement pricing prompted Sebi to respond to market concerns. Erratic settlement prints since August 3 caused option premiums to swing significantly. Market participants anticipate Sebi's paper will reduce reliance on the single CAS print. This move is expected to restore trader confidence and remove trading volume overhang.

Sensex experiences a dramatic 2,100-point swing during closing auction, raising concerns over liquidity and participation in CAS.

Sebi plans to review the methodology for setting derivative settlement prices on expiry after market participants raised concerns over the new Closing Auction Session (CAS). The…

Capital market stocks saw gains Friday after regulator Sebi's circular on the Closing Auction Session mechanism. Trader pushback against CAS-linked settlement pricing prompted…