New market timings from Monday; F&O segment to remain open till 3:40pm
Mumbai, August 2
Market trading timings will change from Monday, August 3, following the implementation of the Securities and Exchange Board of India's revised trading framework.
Under the new framework, SEBI has introduced a Closing Auction Session (CAS) for F&O-eligible (Category I) stocks in the equity cash segment to improve price discovery and market efficiency.
For F&O-eligible stocks, the regular trading session will continue till 3:15 pm, followed by a transition period from 3:15 pm to 3:20 pm.
The Closing Auction Session will begin with CAS Order Entry I from 3:20 pm to 3:25 pm, followed by CAS Order Entry II from 3:25 pm to 3:30 pm. During the second phase, modification or cancellation of market orders will not be allowed, while the session will close randomly within the last two minutes.
Order Matching will take place from 3:30 pm to 3:35 pm, after which the auction price will be determined. The price discovered through the Closing Auction Session will become the official closing price for F&O-eligible stocks.
However, trading hours for non-F&O equity cash stocks will remain unchanged, with the market continuing to close at 3:30 pm.
In the equity derivatives (F&O) segment, trading will be extended by 10 minutes and will now continue until 3:40 pm. Timings for other market segments will remain unchanged.
SEBI has also revised the pre-open session. The order entry window will now run from 9:00 am to 9:07 am, while order matching will take place from 9:07 am to 9:15 am. Regular trading will continue to begin at 9:15 am.
According to SEBI, the Closing Auction Session is aimed at ensuring a fair and transparent closing price through an auction mechanism, improving execution efficiency by aggregating liquidity, providing equal access to all investors, reducing tracking errors for passive funds, and aligning India's market structure with global best practices.
— ANI
Reader Comments
I'm a bit confused about the CAS process. So the closing price for F&O stocks will change from 3:30 to 3:35? As a retail investor, I just hope this brings more transparency and doesn't add unnecessary complexity.
Smart move by SEBI! The random close within last 2 minutes will prevent the "closing price manipulation" we often saw. Longer F&O hours also means we can align with global market moves. Good for institutional investors too.
Not sure how this will help the common investor like my father who trades via his broker. But if it means better price discovery, I'm all for it. The transition period between 3:15-3:20 might confuse some people though. 🤔
Good initiative but I wish they had also extended trading hours for cash market. For a country where FIIs play such a big role, being open till 3:40 helps them align with European markets. Nevertheless, progress is progress! 🇮🇳
SEBI is really stepping up its game! The closing auction will help mutual funds and ETFs get better prices, which means less tracking error. This is a win-win for all market participants. Looking forward to smoother transitions!
While I appreciate the intent
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