From the conversation
“On timing, the preference is for continuous trading to run normally through 3:00–3:30pm, with the CAS window sitting immediately after for price discovery, and index derivatives allowed to trade a little further out, toward 3:45.”
On settlement first, then the blend
SEBI's consultation offers two expiry-settlement paths: a blended VWAP that folds CAS into the last 30 minutes of continuous trading, or CTS VWAP alone — the 3:00–3:30 window, with no auction contribution. The desk point in Moneycontrol was sequencing, not scrap-or-keep: a blended VWAP can work once cash-auction volumes are meaningful; until then the established CTS VWAP is the cleaner settlement. The switch should be data-driven, not automatic after 12 months.
On when the session actually ends
The same paper asks whether CAS should start after 3:30, with derivatives running toward 3:45, or keep the current 3:15 auction with derivatives to 3:30. The current split leaves participants guessing when continuous trading has actually ended. Run the cash book normally through 3:30, put the auction immediately after for price discovery, and let index derivatives print a little further out.
The excerpts above are from Shai Coelho's remarks as published in Moneycontrol. The full piece is at Moneycontrol. Market commentary is educational and observational; it is not investment advice or a trading recommendation.