To Replace Current System
SEBI to implement closing auction session for equity cash segment from Aug 3
This story was originally published at 22:48 IST on 16 January 2026
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MUMBAI – The Securities and Exchange Board of India will implement the closing auction session for equity cash segment from Aug. 3, according to a circular by the regulator. It will also modify some details of pre-open auction session framework in the master circular for stock exchanges from Sept. 7.
The closing auction session will replace the current system where closing stock prices are determined on the basis of volume-weighted average price of trades executed during the last 30 minutes of the continuous trading session. This closing session will happen in a 20-minute window between 1515 IST and 1535 IST.
"CAS aggregates market interest into a single pool of liquidity, thereby providing a fair and transparent closing price and improving the efficiency of execution for large orders," the circular said. This would also help passive funds to reduce tracking error.
The closing auction session will be initially implemented for stocks on which derivative contracts are available. The stock exchanges will keep following the old system for the remaining stocks, SEBI said.
The closing aution session will have a price band of 3% from a stock's reference point, which will be calculated on the basis of volume-weighted average price of trades executed between 1500 IST and 1515 IST. The stock exchanges have to formulate a standard operating procedure within a month to ensure alignment of the price band of stock futures with the price band applicable during the closing auction session, SEBI said. End
Reported by Anshul Choudhary
Edited by Akul Nishant Akhoury
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