Pradyun Chakravarty Shares Insights on Vulnerabilities in Sensex Closing Auction Session

Pradyun Chakravarty has shared his insights on the emerging regulatory and market-structure concerns surrounding the newly introduced Closing Auction Session (CAS) for the BSE Sensex, following SEBI’s interim action in connection with alleged manipulation of the Sensex closing price.

The CAS was introduced on August 3, 2026, with the objective of strengthening price discovery and making closing prices more transparent and representative. However, the events surrounding the Sensex expiry on August 13 have raised questions about the vulnerability of a price-setting mechanism where market participation remains relatively thin.

Highlighting the significance of liquidity in ensuring an effective price-discovery mechanism, Chakravarty pointed to the sharp disparity between NSE and BSE auction turnover on the first day of CAS.

“The sharp disparity between NSE and BSE auction turnover on the first day of CAS had highlighted the potential vulnerability of the price-setting mechanism,” he said.

According to Pradyun, the concern becomes particularly significant because the closing price established through the auction can have consequences well beyond the underlying cash-market transactions.

Read the full article in Business Today.

Last Updated on 31 August, 2026