Brokers See Low Retail Appetite for Closing Auction Session
· Business · LiveMint, Times of India
Retail participation in the Securities and Exchange Board of India's new closing auction session has remained below 10% since its introduction on 3 August. Stock brokers report that retail investors are deterred by weak liquidity, unpredictable price movements, and a lack of clear commercial incentives to trade during the end-of-day window. Under the framework, continuous trading for 213 derivative-traded stocks ends at 3:15 pm, followed by order entry from 3:20 pm and random closing between 3:28 pm and 3:30 pm. While SEBI has instructed brokers to display reference auction prices upfront on trading apps to improve transparency, market participants expect short-term retail engagement to stay muted.
Why it matters
The low adoption rate affects the liquidity and price discovery goals of SEBI's newly implemented closing-price mechanism for major Indian stocks.
Read the original report — LiveMint
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