SEBI has directed brokers to prominently display indicative auction prices on trading platforms and educate clients about the Call Auction Session (CAS) mechanism. The regulator confirmed there will be no rollback of CAS, introduced to address volatility in illiquid securities. Brokers must upgrade their systems to comply with the new display and disclosure requirements. SEBI's stance signals CAS is a permanent structural reform to improve price discovery in thinly traded stocks listed on Indian exchanges.

The Call Auction Session (CAS) is a price discovery mechanism introduced by SEBI specifically for illiquid securities — stocks with very low trading volumes where continuous trading can cause extreme price manipulation or volatility. Unlike continuous trading, CAS operates during a defined window where buy and sell orders are accumulated and matched at a single equilibrium price, called the indicative auction price.

SEBI originally introduced call auctions for the pre-open session of all stocks and later extended the CAS framework specifically for illiquid securities to reduce manipulation risk. Brokers are now required to prominently display the indicative auction price on their trading applications so investors can make informed decisions before the auction clears.

The 'no rollback' signal is regulatory significance: SEBI is treating CAS as a permanent market structure reform, not a pilot. This means brokers face hard compliance obligations — system upgrades, client education, and prominent display requirements — rather than optional preparedness.

For SEBI Grade A aspirants, this connects to the broader static concept of price discovery mechanisms, SEBI's powers to regulate trading practices under SEBI Act, 1992, and the regulator's mandate to protect investors in illiquid segments. The examiner has historically tested acronym expansions and the identity of mechanisms introduced by SEBI, making CAS a live candidate for a 2025 question.