New Delhi, Aug. 17 -- The closing auction session (CAS) for securities markets is "here to stay for sure", said Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey on Monday, even as the new mechanism faces criticism over low liquidity and sharp price swings.

Under CAS, buy and sell orders are pooled during a dedicated end-of-day window and matched at an equilibrium price that allows the maximum volume of shares to trade. The mechanism is aimed at improving price discovery and bringing India's market closer to practices followed in other major markets.

Speaking at an event, Pandey said the market regulator would examine and address constraints in the mechanism, but ruled out abandoning it because some market partic...