The Securities and Exchange Board of India (SEBI) on December 05, 2024, issued the notification regarding the Consultation paper on Introducing Close Auction Session in Equity Cash segment.
The following has been stated namely: -
• The consultation paper suggests a broad design framework for a Close Auction Session (CAS) in India and seeks public comments on the desirability, feasibility and efficacy of introducing a CAS framework in equity markets in India.
• The public comments have been raised for the following proposals namely: -
o CAS may be introduced as a call-auction mechanism for determining closing price of each stock in equity cash segment, replacing the extant VWAP mechanism
o CAS may be implemented as a separate session of 15 minutes from 15:30 -15:45
o Based on the analysis carried out for Indian stocks entering/exiting major international indices on rebalancing days, a price band of ± 5% from the Reference Price may be applied.
o Limit orders and Market orders shall be allowed during CAS. Both shall be reckoned for computation of equilibrium price.
• Comments may be sent by December 26, 2024 via online web based platform through https://www.sebi.gov.in/sebiweb/publiccommentv2/PublicCommentAction.do?doPublicComm
