Sebi to Quickly Move Ahead with CAS Proposals After Receiving Over 3,500 Comments

Sebi chairman Tuhin Kanta Pandey has announced that the market regulator will proceed with its plans for the Closing Auction Session. This comes after an overwhelming response to its consultation paper, which garnered over 3,500 comments from stakeholders.

October 3 is the deadline for submitting comments. And Pandey assured that Sebi would quickly review the responses and proceed with the proposals. Indicating that the consultation process would not require an extended period of analysis.

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"Today is the last date, and we will actually quickly look at all these comments and go ahead, because reports suggest our proposals are quite clear," Pandey said at an event organised by the Commodity & Capital Market Participants Association of India (CPAI).

Sebi has initiated a comprehensive assessment of the corporate bond derivatives market, prompted by concerns about its influence on derivatives settlement prices. Launched in September, the review seeks to address pressing issues and solicit input from market stakeholders on potential solutions. The regulator's goal is to foster growth in the corporate bond derivatives market.

This will rely on regulatory support, technological advancements, and industry participation.

The regulator has already taken steps to encourage exchange-traded systems in the bond market. This includes an electronic bidding platform for primary issuances. Regulation of online bond platform providers, and strengthening of the request-for-quote mechanism for secondary-market transactions. "Bond indices and derivatives will be, I would think, a major milestone going forward," Pandey said.

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Sebi is working with the Reserve Bank of India (RBI) on measures to further ease access for foreign portfolio investors (FPIs). The regulator has also taken steps to allow FPIs to participate in non-agricultural commodity derivatives. FPI holdings could increase or decline depending on investment opportunities in different markets.

Investment decisions, however, ultimately depend on the returns and opportunities available across countries. Sebi's focus on making onboarding and access to Indian markets easier is aimed at encouraging FPI participation in the domestic market.