We imported the auction, but we left out the brakes

India's Closing Auction Session has been criticized for its lack of safeguards, particularly in allowing order cancellations until the auction ends. This has raised concerns that the session can be vulnerable to manipulation, which could undermine its purpose of improving price discovery. The Sensex and Nifty 50 indices, which are heavily reliant on this session, may be exposed to volatility if stronger controls are not put in place to prevent market manipulation.

Why it matters

The recent sharp swings in the Indian market have exposed gaps in the safeguards of the Closing Auction Session. This could lead to further market volatility and affect investor confidence.

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