Mumbai, August 2, 2026 (Yes Punjab News)
Investors in the Indian stock market will see important changes in trading procedures from Monday, August 3, as the Securities and Exchange Board of India (SEBI) rolls out a revised market framework aimed at improving price discovery, enhancing market efficiency and aligning domestic trading practices with global standards.
A major feature of the new framework is the introduction of a Closing Auction Session (CAS) for Futures and Options (F&O)-eligible, or Category I, stocks in the equity cash segment. The auction-based mechanism is intended to ensure transparent and efficient determination of closing prices by consolidating market liquidity at the end of the trading session.
Under the revised schedule, regular trading in F&O-eligible stocks will conclude at 3:15 pm, followed by a transition period until 3:20 pm. The Closing Auction Session will begin with an initial order entry phase from 3:20 pm to 3:25 pm, followed by a second order entry phase from 3:25 pm to 3:30 pm. During the latter phase, investors will not be allowed to modify or cancel market orders, and the auction will conclude randomly within the final two minutes.
Order matching will take place between 3:30 pm and 3:35 pm, after which the discovered auction price will become the official closing price for all F&O-eligible stocks.
SEBI has also extended trading hours in the equity derivatives segment. From August 3, futures and options trading will remain open until 3:40 pm, an extension of 10 minutes beyond the current schedule.
Trading hours for non-F&O equity cash stocks will remain unchanged, with the market continuing to close at 3:30 pm.
The regulator has also revised the pre-open session timetable. The order entry window will now remain open from 9:00 am to 9:07 am, followed by order matching from 9:07 am to 9:15 am. Regular market trading will continue to commence at 9:15 am.
According to SEBI, the new framework is expected to improve the quality of closing prices, ensure equal market access for all investors, reduce tracking errors for passive investment funds and bring India’s equity markets closer to international best practices.
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