Former BJP MP Kirit Somaiya has asked India’s market regulator SEBI to investigate a sharp move in the Sensex during the Closing Auction Session (CAS) on August 27. He says the index falls by more than 2,000 points within minutes and then recovers a substantial portion of those losses shortly afterward.
Somaiya questions whether the CAS framework introduced earlier this month has issues affecting liquidity and price discovery. The Economic Times reports his concern focuses on whether the new mechanism is vulnerable to abrupt price movements during the closing process. NDTV describes that CAS began on August 3, replacing the prior method used to determine closing prices, which relied on volume-weighted average price calculations during the final half-hour of trading.
The two reports describe the same request and the same event, with outlets differing mainly in emphasis: one highlights concerns about liquidity and price discovery, while the other focuses on the change from the previous closing-price method to CAS.
