India's market regulator SEBI is reviewing the closing auction system introduced on Aug. 3 after sharp price swings affected more than 200 stocks used to settle equity derivatives contracts. The regulator may propose changes to settlement price calculations and plans to release a consultation paper within a week.

The review comes as the NSE Nifty 50 marked a fourth consecutive day of declines and is on track for a fourth weekly loss. Asian stocks and currencies rose early Friday as investors reduced bets on a Federal Reserve rate hike, weakening the dollar.

Meanwhile, robust capital inflows driven by RBI special measures have pushed banking liquidity to pandemic-era highs, with surplus cash reaching around 10 trillion rupees in under two months. This rapid build-up raises concerns about asset bubbles and inflation, prompting calls for the RBI to act swiftly to absorb excess liquidity.

On the IPO front, 23 companies launched mainboard offerings in August, the highest in over a year, with a dozen more expected in the first half of September. SEBI extended IPO approval validity through September 2026, capitalizing on recent market stability. India also drew a record $127 billion from its diaspora, adding to liquidity pressures.