From the clipping
“CAS is not the problem. The fact is that there is not much liquidity in the Indian market. On the day of the Morgan Stanley Capital International rejig, we did not face any problems because liquidity was not a constraint on that day. The regulator should talk to the traders and institutions and figure out a way to solve this problem.”
On a thin close, not the auction itself
On 8 September the Nifty finished 0.61% lower, then the Indicative Equilibrium Price in CAS swung as low as 23,377 before snapping back toward 23,600. The 23,650 put moved from ₹11 to ₹95 in minutes. The desk point in Business Standard was the same one as the MSCI rebalance day in reverse: when the closing window has size, the auction clears. When it does not, both sides of the options book can get walked.
The excerpt above is from Shai Coelho's remarks as published in Business Standard. The print clipping is shown as it appeared; the full piece is at Business Standard. Market commentary is educational and observational; it is not investment advice or a trading recommendation.