Addressing concerns around CAS, Pandey said SEBI is looking at data, including expiry-day data, to understand the issues being flagged by market participants.
He said some concerns could stem from old systems that have not yet been updated to the new mechanism.
“CAS is here to stay for sure. We will see if there are certain constraints or issues which we will improve,” Pandey said.
He said any tweaks to CAS, if required, would be based on data. SEBI would take time to analyse the system and feedback before making changes.
Pandey said the market is also getting familiar with CAS and that some aspects could improve as participation increases.
“We should first know what the deformities are. Once deformities are understood, then we can understand how to remove them,” he said.
On concerns around tracking error, Pandey said SEBI does not see an issue on that front and is examining the available data.He also said CAS was introduced as part of efforts to address problems associated with the VWAP-based system.
“We are trying to eliminate problems with VWAP by bringing CAS,” Pandey said.
On demands to return to the earlier system, Pandey said SEBI would not revert to VWAP simply because some market participants wanted to trade options in a particular manner.
“We cannot go back to VWAP system just because some people want to do options trading the way they want to do options trading,” he said.
First Published: Aug 17, 2026 12:56 PM IST
