BSE closing-auction chaos: option volumes slide 14% as thin liquidity spirals
BSE's Closing Auction Session, live since August 3, has reset index option volumes to a new low: Nuvama counts average daily premium at Rs 15,600 crore, down 14% week-on-week, with contracts off more than 8%. Thin participation is feeding a self-reinforcing spiral, and Sebi's ex-parte order against two firms for alleged CAS manipulation has deepened the scrutiny. The brokerage's fix is blunt: only higher participation breaks the cycle.