SEBI Introduces New Stock Market Closing Timings; F&O Trading Extended Till 3:40 PM

“F&O stocks will stop regular cash trading at 3:15 p.m., derivatives will remain open until 3:40 p.m., while non-F&O shares will continue trading until 3:30 p.m." 

New Stock Market Timings and Closing Auction Session

SEBI has implemented a Closing Auction Session (CAS) for F&O-eligible stocks. The revised market structure came into effect from August 3, 2026.

Under the new structure, non-F&O stocks will continue normal trading until 3:30 PM, with no change in their closing time. However, F&O-eligible stocks in the cash market will stop continuous trading at 3:15 PM and then enter a Closing Auction Session, during which buy and sell orders are matched to determine the official closing price.

Equity derivatives trading has been extended by 10 minutes, allowing trading to continue until 3:40 PM. This gives traders additional time to adjust or hedge their positions after the closing auction determines the final cash market price.

The revised closing mechanism is intended to improve price discovery, reduce the possibility of price manipulation near market close, and provide a more transparent process for determining closing prices.

Closing Auction Session and F&O Trading Timings

• Three Different Closing Times: The market will now have separate closing timelines for non-F&O stocks, F&O-eligible cash market stocks, and equity derivatives instead of a single closing time.
• F&O Cash Market: Continuous trading in F&O-eligible stocks ends at 3:15 PM, followed by the Closing Auction Session, which determines the official closing price.
• Equity Derivatives: Trading in the equity derivatives segment will now continue until 3:40 PM, providing additional time for traders to manage positions after the auction price is established.
• Objective of the Change: SEBI introduced the revised framework to improve price discovery, increase market transparency, and align Indian market operations with international practices.

What to Watch Next

• Investors and traders should familiarize themselves with the revised closing schedule, particularly if they trade F&O stocks or derivatives.
• Market participants may observe how the Closing Auction Session impacts closing prices, liquidity, and volatility over the coming weeks.
• Traders should also monitor any further operational guidance or implementation updates issued by SEBI, NSE, or BSE regarding the new market framework.