New Delhi, Sept. 10 -- Countries including the US, Japan and Hong Kong also faced low liquidity when they introduced closing auction sessions (CAS), but liquidity recovered over time, Securities and Exchange Board of India (Sebi) chief Tuhin Kanta Pandey said on Thursday.

"Many market participants have told us about rollout of CAS in all jurisdictions including US, Japan, Hong Kong and they have told that initially, everywhere, wherever CAS was brought in, liquidity was always an issue. It builds up over time," Pandey said on the sidelines of the Global Fintech Fest 2026.

The comments come as India's market regulator looks to tweak the CAS framework to improve price discovery for the derivatives market on expiry days.

On 3 September, S...