SEBI’s CAS will help detect market manipulators, vows “strict action”

SEBI's CAS will support detect market manipulators, vows "strict action" CAS mechanism provides SEBI with greater capabilities to identify manipulation compared with the earlier Volume Weighted Average Rate (VWAP)-based system.

Key points

• SEBI is due to release its study on retail and non-retail participation in the derivatives market for 2025-26 on August 20, Pandey remarked.
• Speaking at a FICCI Capital Markets event in Mumbai, Pandey remarked the regulator would take swift and strict action against attempts to manipulate costs during the CAS.
• "We want to make one thing clear, that if people do manipulation in CAS, then we will take strict action and do it immediately, " Pandey remarked.
• While not being limited to them, pandey remarked the report would examine different categories of market participants and their activity, with particular attention to retail investors.
• He remarked the latest report would maintain continuity with SEBI's earlier studies while providing greater granularity in the data and analysis.

FICCI Senior VP and The Sanmar Group's Chairman Vijay Sankar and SEBI Chairman Tuhin Kanta Pandey and NSE CEO Ashish Kumar Chauhan during the FICCI CAPAM 2026 – 23rd Annual Capital Markets Conference, in Mumbai Photo Credit: ANI.

Notably, the newly introduced Closing Auction Session (CAS) mechanism for determining stock market closing rates will strengthen Securities and Exchange Board of India's (SEBI's) ability to detect and act against market manipulation, its Chairperson Tuhin Kanta Pandey stated on Wednesday.

"We want to make one thing clear, that if people do manipulation in CAS, then we will take strict action and do it immediately, " Pandey remarked. He continued that the CAS mechanism provides SEBI with greater capabilities to identify manipulation compared with the earlier Volume Weighted Average Rate (VWAP)-based system. SEBI to release granular derivatives study.

"The idea of this report is to be, number one, consistent. We have been releasing these data. But the analysis this time will be more granular and there will be more individuals to comment, " he stated.

While not being limited to them, pandey remarked the report would examine different categories of market participants and their activity, with particular attention to retail investors. SME IPO framework set for overhaul.

Notably, the SEBI chairperson additionally stated the regulator was looking to overhaul the framework governing the initial public offerings (IPOs) of small and medium enterprises (SMEs), noting that the existing system had created difficulties for traders.

He further remarked there was a need to facilitate global fund management in India and indicated that the new Portfolio Management Services (PMS) regulations would assist ease the process.

Taken together, the developments around sEBI's CAS will help detect market manipulators, vows strict action point to a situation that is still moving, and the coming days should bring more clarity.