SEBI Revises CAS Rules, Returns To 30-Minute VWAP: Will Trading Volumes Recover In Indian Markets?

SEBI has revised its Closing Auction Session (CAS) rules and brought back the 30-minute VWAP mechanism for derivatives expiry, aiming to revive trading volumes and support India's capital markets. Sneha Poddar, Vice President, Research Analyst, B&D, MOFSL, explains how these changes could improve market activity and provide relief to capital market stocks that have faced selling pressure. She also highlights how revised CAS timings could give non-index stocks more trading time, while the inclusion of bank deposits and insurance in the broader framework could improve portfolio reporting transparency. The changes could support a recovery in the capital market ecosystem.