SEBI's CAS proposal introduces a defined trading window (3:15–3:35 PM IST) to determine closing prices, starting with F&O-linked stocks.
CAS is designed to replace the VWAP-based mechanism and improve price discovery.
The move aligns Indian practices with global exchanges like NYSE and LSE.
CAS may reduce volatility around market close and enhance transparency.
Analysts suggest this could benefit valuation accuracy and mutual fund NAVs.
SEBI is soliciting feedback before phased implementation.
This structural change may reshape intraday strategies and order flow.
Institutional investors stand to benefit from cleaner price formation.
The reform may also improve monitoring of manipulative price activity.
CAS stands to be a significant reform for Indian capital markets.