- SEBI revises its trading framework, scheduling new market timings to take effect Monday, August 3, with the F&O segment extended by 10 minutes until 3:40 pm.
- The pre-open session order entry moves to 9:00–9:07 am and order matching to 9:07–9:15 am.
- For F&O-eligible stocks, the regular trading session runs until 3:15 pm, followed by a transition period to 3:20 pm; CAS order entry runs from 3:20 pm to 3:30 pm, and order matching takes place from 3:30 pm to 3:35 pm.
- Trading hours for non-F&O equity cash stocks remain unchanged, with the market continuing to close at 3:30 pm.
Indian stock markets will undergo significant changes on August 3 as the Securities and Exchange Board of India (SEBI) implements a revised closing price mechanism. The F&O segment will now close at 3:40 pm, extending trading by 10 minutes to enhance market efficiency.12
Under the new framework, SEBI has introduced a Closing Auction Session (CAS) for F&O-eligible stocks in the equity cash segment. This session aims to improve price discovery and market efficiency by aggregating liquidity and providing equal access to all investors. The regular trading session for these stocks will continue until 3:15 pm, followed by a transition period until 3:20 pm.456
The CAS will consist of two order entry phases: CAS Order Entry I from 3:20 pm to 3:25 pm and CAS Order Entry II from 3:25 pm to 3:30 pm. Order matching will occur from 3:30 pm to 3:35 pm, with the auction price determined thereafter. Notably, during the second phase, modifications or cancellations of market orders will not be permitted, and the session will close randomly within the last two minutes.78
The price discovered through the CAS will become the official closing price for F&O-eligible stocks. In contrast, trading hours for non-F&O equity cash stocks will remain unchanged, continuing to close at 3:30 pm. SEBI has also revised the pre-open session, with the order entry window now running from 9:00 am to 9:07 am and order matching from 9:07 am to 9:15 am.3
According to SEBI, the CAS aims to ensure a fair and transparent closing price through an auction mechanism, aligning India's market structure with global best practices.
“Under the revised framework, pre-open order entry runs 9:00–9:07 am and order matching 9:07–9:15 am, while non-F&O cash stocks still close at 3:30 pm. SEBI says the closing auction aims to ensure a fair and transparent closing price and reduce tracking errors for passive funds.”
