Economy
SEBI Implements Closing Auction Session for F&O Stocks Starting August 3

SEBI Implements Closing Auction Session for F&O Stocks Starting August 3

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THE BRIEF
1

Starting August 3, 2026, SEBI and the NSE will introduce a Closing Auction Session for eligible F&O stocks to replace the current VWAP-based pricing mechanism.

2

The new system extends equity derivatives trading by 10 minutes, with F&O stocks now closing at 3:35 PM and index derivatives trading continuing until 3:40 PM.

3

Regulators expect the auction-based pool to improve price discovery and reduce market influence from large trades placed by passive funds near the market close.