SEBI Draws Red Line: Don’t Game the New Closing Auction System
What Happened
SEBI Chairman Tuhin Kanta Pandey warned that the regulator will take strict and immediate action against any attempt to manipulate the newly introduced Closing Auction Session (CAS) mechanism. He said the system is designed to improve transparency and gives SEBI a stronger ability to detect market manipulation than the earlier VWAP-based closing price system.
Key Takeaways
SEBI is standing firmly behind its new market-closing mechanism, signalling zero tolerance for attempts to distort prices or undermine confidence in the reform.