The National Stock Exchange (NSE) will extend trading hours for the equity derivatives segment by 10 minutes, allowing trading in stock and index futures and options till 3:40 PM from August 3, 2026, as part of the implementation of the new Closing Auction Session (CAS) framework.
The move follows SEBI’s overhaul of the market closing process for F&O-linked stocks. While the Closing Auction Session will apply only to eligible cash market securities, the derivatives market will remain open for an additional 10 minutes to ensure an orderly transition and alignment with the new closing price discovery mechanism.
Under the revised framework, stock futures will be assigned a fresh reference price at 3:15 PM and a static price band of plus or minus 3% will apply until market close at 3:40 PM. Any pending orders outside the revised price band will be cancelled by the exchange.
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There is no change in the trading mechanism for options contracts, margin requirements, client code modification timelines or existing open positions. However, traders will have an additional 10 minutes to adjust and manage positions after the cash market enters the closing auction phase.
The Closing Auction Session is being introduced for stocks that have listed derivatives contracts, replacing the current system where closing prices are determined using the volume-weighted average price (VWAP) of the final 30 minutes of trading. NSE said the new framework is aimed at improving closing price discovery and reducing volatility around the market close.
The exchange will implement the Closing Auction Session on Aug. 3, while changes to the pre-open market framework are scheduled to take effect from Sept. 7.
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