Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey asserted that India needs capital markets that can mobilise capital, manage risk and build investor confidence.
While addressing the 12th International Convention of the Commodity and Capital Market Participants Association of India in New Delhi today, he said, the regulator is working to strengthen the market structure so that households can invest with confidence, businesses can raise funds for growth, and market intermediaries maintain high standards of conduct. SEBI Chairman said, the regulator is examining concerns related to the settlement price framework for derivatives on expiry days following the introduction of the Closing Auction Session – CAS. The mechanism was introduced to improve price discovery for eligible stocks at market close by using a call-auction process to determine a single equilibrium price instead of relying solely on volume-weighted average prices.
He also said, SEBI is working to deepen and improve liquidity in cash markets, expand participation and strengthen securities borrowing and lending. He added that efficient hedging and arbitrage can improve price discovery and strengthen the interaction between cash and derivatives markets. The regulator is also examining position limits for non-agricultural contracts with the aim of improving market liquidity and depth while maintaining risk controls.
