SEBI Directs Brokers to Allow Orders During Closing Auction
· Business · LiveMint, NDTV Profit, Indian Express
The Securities and Exchange Board of India has instructed stockbrokers to update their systems to accept trade orders during the first five minutes of the closing auction session. Starting in September, orders will be accepted between 3:15 pm and 3:20 pm to improve liquidity and price discovery in the 20-minute session. The closing auction, which currently covers 208 derivative-traded stocks, has seen low participation, leading to concerns regarding price volatility. SEBI Chairman Tuhin Kanta Pandey confirmed the regulator will maintain the framework despite industry pushback. The mechanism matches buy and sell orders at an equilibrium price to determine the final closing value of shares.
Why it matters
This change is expected to reduce market manipulation and price swings by increasing retail and domestic trader participation in the end-of-day auction window.
Read the original report — LiveMint
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