Saturday 08 Mar, 2025 11:25 AM
Site map | Locate Us | Login
   Shilpa Medicare's Raichur units gets Form 483 with one observation from US FDA    JSW Steel's crude steel production climbs 12% YoY in February 2025    Oriental Rail Infra secures Rs 43-cr Vande Bharat order from Indian Railways    Lemon Tree Hotels signs two new properties in Madhya Pradesh    Laxmi Dental spurts 33% in four days    Quess Corp jumps on NCLT approval for three-way demerger    Gensol Engineering Ltd leads losers in 'A' group    Shaily Engg jumps 20% in six days    Nagarjuna Fertilizers & Chemicals Ltd leads losers in 'B' group    B R Goyal Infra bags Rs 71-cr work order from NHAI    Volumes jump at Sun Pharma Advanced Research Company Ltd counter    Epigral edges higher after Crisil Ratings upgrades ratings to 'AA' with 'stable' outlook    Real Estate stocks slide    Information Technology stocks edge lower    Utilties shares fall 
Saravan Stocks
       
Market Beat
News on what’s happening in the market.
SEBI proposes auction process for accurate closing prices
11-Dec-24   15:06 Hrs IST

The Securities and Exchange Board of India (SEBI) has proposed a reform to enhance the accuracy and transparency of stock closing prices in the Indian equity market. The regulatory body has introduced a consultation paper outlining the implementation of a 'Close Auction Session' (CAS) as an alternative to the current closing price determination system.

The proposed CAS will involve a 15-minute session held after regular trading hours, from 3:30 PM to 3:45 PM. This session will be divided into four stages: reference price determination, order input, a no-cancellation period with a random closing of orders and final trade confirmation and order matching. During this period, investors can place buy and sell orders to establish the closing price of a stock.

Currently, the closing price of a stock in India is determined using the Volume Weighted Average Price (VWAP) of the last 30 minutes of trading. SEBI argues that this system does not always reflect true market conditions, particularly during high volatility or significant market events.

Fund managers and investors have raised concerns that the current method could lead to price distortions, especially on days involving index rebalancing or derivatives expiry. Passive fund houses have also pointed out risks such as increased price volatility and unfulfilled large orders under the VWAP system.

SEBI proposes a phased introduction of the CAS, starting with stocks that have derivative products, ensuring sufficient liquidity. The system may later be expanded to include other stocks as it proves effective.

Closing prices are critical in financial markets as they serve as a reference for the next day's trading, portfolio valuations, and stock analysis by fund managers and analysts. SEBI's proposed CAS aims to improve accuracy and minimize misleading signals for investors by providing more transparent and robust price discovery mechanisms.

SEBI has invited public suggestions on the CAS proposal, with a submission deadline of December 26, 2024. The feedback will be instrumental in refining the design and ensuring the system effectively addresses market participants' needs.

This reform marks another step by SEBI toward enhancing transparency and efficiency in India's equity markets, aligning them with global best practices.

Powered by Capital Market - Live News

   Attention Investors : Prevent Unauthorized Transactions in your demat account --> Update your Mobile Number with your Depository Participant. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat account directly from CDSL on the same day........issued in the interest of investors.
   Attention Investors : Prevent unauthorised transactions in your account Update your mobile numbers/email IDs with your stock brokers / Depository Participant. Receive information of your transactions directly from Exchange / Depositories on your mobile / email at the end of the day .... Issued in the interest of Investors.
   Attention Investors : KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
   Attention Investors : No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
Email ID: info@ssplwealth.com       Customers grievances : grievances@ssplwealth.com     Compliance officer : Mr.R Udayakumar , compliance@ssplwealth.com,  Mobile No: 7305522205
Hit Count : 39364603
SEBI Regn.Nos : NSE/BSE-INZ000192638 | CDSL : IN-DP-262-2016
Member IDs : NSE : 11221 | BSE : 6292 | CDSL : 12045000 | MCX : 56990 | AMFI Regn.No : 2662
Designed , Developed & Content provided by CMOTS INFOTECH.(ISO 9001:2015 certified) © Copyright 2011 All Rights Reserved. SSPL WEALTH Pvt. Ltd