Mumbai, Aug. 4 -- The Securities and Exchange Board of India (Sebi) has asked brokers to encourage greater participation by retail investors in the newly introduced closing auction session (CAS), amid concerns over sharp price swings and liquidity during the market's final minutes of trading, three people aware of the discussions told Mint.

The regulator conveyed the message during a meeting with brokers on Tuesday, ahead of the second day of trading under the new framework.

One of the people cited above, who requested anonymity, said that the brokers agreed to Sebi's request, and in turn told the regulator that the earlier closing of the continuous trading session at 3:15 pm from 3:30 pm meant that arbitrage funds of AMCs (asset manage...