• CAS trading changes: SEBI restored continuous trading in F&O stocks until 3:30, set a 15-minute reference price for the CAS ±3% band, and will use the last half-hour average for derivative settlement. On expiry days, index derivatives close at 3:30, while stock futures continue for 15 minutes to help traders square off positions.
• Cash-market pricing: The speakers said CAS still leaves cash-market concerns unresolved: Sensex closed 40 bps above its 3:15 level, potentially giving tracking funds a distorted price. CAS volumes have risen from about ₹1,000–₹1,100 crore to ₹1,600–₹2,000 crore, but Mayank Bansal said they need to increase significantly.
• NAV and arbitrage risks: Speakers said NAV volatility will persist, and arbitrage funds may not participate in CAS because they cannot be sure of receiving shares. Firoz Azeez recommended using arbitrage funds expiry to expiry, redeeming on expiry and moving to a liquid fund if cash may be needed.
• Transition and complexity: Azeez called the solution complex and urged viewers to wait until 6th December, warning that traders could suffer losses before then. He said reducing complexity should be a further priority because derivatives are difficult for retail investors to assess.
• Manipulation and derivatives activity: Using the last 30 minutes’ VWAP should reduce, but not eliminate, the scope for closing-price manipulation; Bansal cited suspected manipulation around a 0.4% Sensex rise on expiry, when BSE cash volumes were ₹15–20 crore. Speakers also said expanded position limits and the revised open-interest calculation could increase derivatives volumes and market volatility, while complex rules and coordinated large positions may disadvantage retail traders.