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India will introduce a closing auction session for F&O stocks Aug. 3
The NSE is extending equity derivatives trading by 10 minutes, and SEBI says the auction approach should improve closing price discovery for eligible F&O names.
India’s equity market schedule will change starting August 3, 2026, as the Securities and Exchange Board of India and the National Stock Exchange introduce a Closing Auction Session, or CAS, for eligible Futures and Options stocks, according to LiveMint Markets.
The CAS replaces the existing Volume Weighted Average Price, or VWAP-based, method for determining closing prices in the F&O segment, moving to a process where buy and sell orders are pooled and matched at a single equilibrium price to set the official close for those stocks.
SEBI said the auction-based mechanism is intended to improve price discovery by reflecting the combined demand and supply from all market participants, rather than relying on trades executed at different times during the closing period.
The rollout also extends equity derivatives trading hours on the NSE from 3:30 PM to 3:40 PM, with the additional 10 minutes meant to align the derivatives trading session with the new cash-market closing auction framework.