MITHILA — Former BJP MP Kirit Somaiya has urged SEBI to investigate the sharp swings observed in the Sensex during the Closing Auction Session on August 27. During that session, the benchmark index plunged by more than 2,000 points within minutes before managing to recover much of the loss.
The sudden movement has drawn scrutiny toward the new CAS mechanism, which was introduced on August 3. Somaiya questioned whether the newly implemented trading framework possesses underlying weaknesses, particularly regarding liquidity conditions and the process of price discovery during market closing.
In his appeal to the regulator, Somaiya called for an inquiry into the August 27 index swing to address concerns surrounding whether the CAS system functions effectively in maintaining liquidity and accurate price discovery.
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Written by the Mithila live 24 news desk from reporting by News wire.
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