Liquidity Concerns Highlighted as Closing Auction Session Faces Low Participation

The BSE’s latest trading innovation, the Closing Auction Session (CAS), is confronting a liquidity shortfall, according to CEO Sundararaman Ramamurthy. Speaking on September 3, he explained that insufficient liquidity has curtailed trader involvement and led to a downturn in index volume.

Ramamurthy linked the liquidity issue to broader market dynamics, noting that the NSE’s monthly equity derivatives turnover for August fell to ₹34.48 lakh crore – the lowest point since November 2023. BSE’s own derivatives turnover for the month recorded ₹32.2 lakh crore, marking its smallest figure since June 2025.

The CEO reiterated that the platform’s health depends on robust participation and that ongoing monitoring will guide future enhancements to the CAS framework.

These observations come after BSE officials clarified that NSE’s share cannot be listed on BSE under current regulations and that NSE will not submit additional documentation for self‑trading approvals, dismissing recent speculative reports.