SEBI Receives Over 3,500 Comments On Closing Auction Session Rules
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SEBI has received over 3,500 comments on proposed Closing Auction Session changes and is reviewing feedback before issuing a circular. The regulator is also focusing on bond markets and simplifying FPI access.
The Securities and Exchange Board of India (SEBI) has received more than 3,500 comments on its proposal to change the Closing Auction Session (CAS) framework. SEBI Chairman Tuhin Kanta Pandey said the regulator is likely to issue a circular after reviewing the feedback.
Pandey made the comments on 3 October 2026 at an event organised by the Commodity & Capital Market Participants Association of India (CPAI). The consultation process ended on the same day.
SEBI To Review Feedback On CAS Framework
SEBI had sought public feedback on proposed changes to the Closing Auction Session. The consultation also covered trading hours and the methodology used to calculate settlement prices for derivative contracts.
The regulator introduced the consultation after concerns emerged over the impact of the CAS mechanism on prices used for settling derivatives. Under CAS, closing prices in the equity cash market are determined through an auction-based process.
SEBI had said the proposed changes were aimed at addressing specific concerns. Market participants were also given the opportunity to suggest alternative approaches.
Pandey said the proposals were clearly defined. He added that SEBI would quickly compile and assess the responses before moving ahead with the next steps.
Focus On Bond And FPI Markets
Pandey also highlighted SEBI's efforts to develop India's corporate bond derivatives market. He said regulatory support, technology infrastructure and wider participation would be important for the segment's expansion.
SEBI has introduced several measures to strengthen the bond market. These include an electronic platform for primary bond issuance, regulations for online bond platform providers and improvements to the request-for-quote mechanism in the secondary market.
The SEBI chairman also said the regulator is working with the Reserve Bank of India (RBI) to simplify access for foreign portfolio investors (FPIs). He said easier onboarding and market access could help overseas investors participate more efficiently in Indian markets.
Pandey, however, noted that FPI flows ultimately depend on investment opportunities and returns available across different markets. SEBI's role is to make the onboarding process and market access as efficient as possible.
Also Read - FPIs Withdraw ₹35,860 Crore From Indian Equities In September
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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