SEBI’s new Closing Auction Session (CAS) is going through some changes.
After seeing sharp moves in some stocks near the market close, SEBI is now allowing brokers to accept orders between 3:15 and 3:20 pm .
Earlier, this 5-minute window was basically a transition period with no fresh orders.
The idea is simple get more participation into the closing auction and hopefully improve price discovery and liquidity.
SEBI is not scrapping CAS. It’s more like fine-tuning the system after seeing how it works in the real market.
For long-term investors, this probably won’t make a huge difference.
But for traders, institutions and anyone with positions linked to the closing price, these last few minutes could become pretty important.
CAS is still new. It’ll be interesting to see how this change plays out.