Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has warned that any attempt to manipulate or defame the newly introduced Closing Auction Session, CAS, will be dealt with sternly.
Speaking to reporters on the sidelines of an event organised by FICCI in Mumbai, Mr Pandey said, SEBI can detect manipulation under CAS more easily than under the earlier Volume Weighted Average Price (VWAP) system. He said, participation in CAS is improving, particularly among mutual funds and proprietary traders.
SEBI introduced CAS on 3rd of this month to improve transparency and prevent market manipulation. Under the system, buy and sell orders are pooled during a designated period near the end of trading and matched through an auction process.
Mr Pandey said, SEBI has not observed any manipulation in CAS so far and maintained that the new system is a major reform that is here to stay.
