MUMBAI: Faced with teething troubles with the Closing Auction Session (CAS), officials at markets regulator Sebi on Wednesday interacted with representatives from large broking houses to understand the problems and asked them to make investors aware of the system. CAS is the newly introduced system for closing price discovery for stocks that are also traded in the derivatives segment of the bourses.
Insists On Creating Better Awareness Among Investing Community In A Meet With Brokers
During the meeting, the regulator also asked brokers to display the prices discovered through CAS on their apps and trading platforms, figures that many investors have been saying were missing from some of those platforms. According to people in the know, Sebi told brokers that the system would not be rolled back. The meeting with brokers came a day after stock exchanges took feedback from market participants to understand the initial glitches that traders and investors were facing in CAS.One of the major pain points for market participants was the sharp spike in the value of Nifty 50 index on NSE, between the time when normal trading closed at 3.15pm and the post-CAS closing at 3.30pm. Sensex on the BSE, however, didn’t show much spike in values. Traders also pointed out that there was divergence between the prices of the same stock on NSE and BSE. According to a trader, the sudden spike in prices and index values on NSE was because more institutional traders trade on NSE than on BSE.
