Economic TimesLean R·
We imported the auction, but we left out the brakes
Every trading day ends with a single number: the closing price. It looks innocuous. It is anything but.That number determines mutual fund NAVs, influences the Nifty and Sensex, and settles expiry-day derivatives. If the closing price is distorted, the consequences do not end with traders. They travel quietly through the financial system.On August 3, India changed how that number is determined. Instead of calculating the close from the average price during the last half-hour of trading(VWAP), ex…
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