- SEBI is set to announce revisions to the Capital Market Access System soon
- The regulator sought market participant feedback before reassessing CAS provisions
- Pricing methodology and VWAP-based mechanism are key focus areas for changes
SEBI is preparing to revise parts of the Capital Market Access System (CAS), with the changes expected to be announced shortly after consultations with market participants, NDTV Profit learnt from sources.
SEBI is likely to finalise the proposed amendments soon, followed by a formal circular setting out the updated framework.
The regulator has reassessed key elements of the CAS framework after seeking views from market participants, the source said.
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SEBI is examining whether certain provisions need to be modified to address concerns raised by stakeholders and ensure smoother implementation of the mechanism.
The pricing methodology is among the key issues that has been discussed in detail. The regulator has considered the use of a volume-weighted average price (VWAP)-based mechanism as part of the proposed framework.
SEBI is expected to communicate the required changes to stock exchanges and ask them to implement the revised provisions at the earliest once the regulator finalises the framework.
However, exchanges may require some time to operationalise the changes, depending on the nature and complexity of the modifications required in their systems.
The source indicated that the regulator is now in the process of finalising the proposed tweaks, with a formal communication expected soon.
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The development comes as SEBI continues to refine market mechanisms through consultations with exchanges and other stakeholders, with the objective of improving the efficiency and transparency of market processes.
Further details on the changes, including the provisions that may be revised and the implementation timeline, are expected to become clear once SEBI issues the formal circular.
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