Nithin Kamath: CAS not the problem behind wild closing prices

Zerodha founder Nithin Kamath says the new Closing Auction Session (CAS) is not the root cause of recent wild swings in closing prices, but rather exposes long-standing structural weaknesses in Indian markets. He cites difficulty in shorting cash stocks, high futures costs after an April tax hike, and limited active trading—only 20–30 lakh of over 13 crore registered investors trade daily—as key constraints. Kamath argues these issues create upward pressure and limit arbitrage, making price gaps more apparent.