
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.
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.
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.