BSE's new closing auction faces liquidity crunch; Nuvama urges more participation

economictimes.indiatimes.com —

India's new Closing Auction Session (CAS) on the BSE saw weak participation, causing a liquidity spiral, with Nuvama reported a 14% plunge in BSE's index option premium volumes and contracts, which is weighing on earnings. The new CAS, introduced August 3, 3:15 pm, uses a 20-minute auction to set closing prices for F&O stocks, with retail traders, with a boycott on August 12, and alleged manipulation by Copthall Mauritius and Mansi Share. Sebi's interim order against Copthall and Mansi alleged manipulative trades during the CAS session, with wrongful gains of Rs 3.67 crore, while analysts say these are initial teething issues that will fade as participation rises.


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