The Closing Auction Session (CAS) in the equity cash segment became operational on Monday, ushering in a new auction-based mechanism to determine closing prices of eligible stocks.
Introduced by markets regulator Sebi, the new framework is aimed at making the price discovery process more transparent and robust, and applies only to cash market stocks with derivative contracts, while the existing volume-weighted average price (VWAP)-based methodology will continue for other stocks.
