India's CAS liquidity concerns not unique, says Sebi chief

India's Securities and Exchange Board of India (Sebi) chief Tuhin Kanta Pandey has said that the country's closing auction sessions (CAS) liquidity concerns are not unique, citing examples from other markets that also faced initial thin liquidity when they introduced CAS. Sebi is now reviewing how settlement prices for derivative contracts are determined in an effort to improve price discovery for the derivatives market on expiry days. The review follows industry feedback on the impact of CAS on expiry-day pricing. The framework, introduced on 3 August, has faced low participation and thin liquidity during the last 15 minutes of trading, keeping several market participants from using the mechanism. The review is part of Sebi's efforts to tweak the CAS framework to address these issues. The framework, which was introduced to improve price discovery for derivatives contracts, has been facing several challenges, including abrupt price swings and uncertainty around closing prices. Sebi has issued a consultation paper to review how settlement prices for derivative contracts are determined, following industry feedback on the impact of CAS on expiry-day pricing.