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India to add closing auction session for futures and options stocks
The Closing Auction Session will run after cash trading ends at 3:15 PM, extending equity derivatives trading by 10 minutes and setting a new official close at 3:40 PM.
India will change how closing prices are set for eligible futures and options, starting August 3, 2026, with the Securities and Exchange Board of India rolling out a Closing Auction Session for F&O stocks, according to LiveMint Markets.
Under the new schedule, cash market trading will end at 3:15 PM for F&O-enabled shares, followed by the Closing Auction Session until 3:35 PM. Derivatives on stocks and indices will continue trading for an additional 10 minutes, with the market close moving to 3:40 PM from 3:30 PM.
A post-close cash session will then run from 3:50 PM to 4:00 PM, during which trades are executed at the official closing price. LiveMint Markets notes that the change replaces the existing VWAP-based methodology for determining the closing price for these instruments.
SEBI is aiming to improve price discovery and transparency, and to ensure the closing value reflects broader market consensus rather than activity concentrated just before the bell. The regulator also expects a common auction pool to support liquidity for larger orders and to align India more closely with closing-auction practices used by exchanges such as the NYSE and London Stock Exchange.