Shares of capital market stocks jumped up to 4% on Tuesday after a report said market regulator Sebi may partly reverse some rules related to the Closing Auction Session (CAS), which has led to sharp volatility in Sensex and Nifty since its inception in August.
The Securities and Exchange Board of India (SEBI) will likely stop using closing auctions to calculate derivatives settlement prices for at least one year and instead use the volume-weighted average price of the last 30 minutes of trading to determine the derivative pricing, people familiar with the matter told Reuters. This would mark a partial reversal of the new mechanisms introduced to set closing prices of key stocks and derivative contracts.
