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SEBI Updates Closing Auction Timings and Derivatives Settlement Rules
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CNBC TV18•15-10-2026, 21:51
SEBI Updates Closing Auction Timings and Derivatives Settlement Rules
- •SEBI has revised the closing auction session framework for the equity cash market, changing session timings and derivatives settlement methodologies starting December 7, 2026.
- •The new 10-minute closing auction session will run from 3:30 pm to 3:40 pm, featuring specific stages for order entry, limit-only orders, and a random system-driven closure.
- •Expiry day trading for expiring index derivatives contracts will stop at 3:30 pm, while stock derivatives and non-expiring index derivatives will trade until 3:45 pm.
- •Settlement prices on expiry days for index and stock derivatives will be determined using the volume-weighted average price (VWAP) of the underlying assets during the last 30 minutes of continuous trading.
- •Rules governing the transition of unexecuted limit and iceberg orders into the closing auction session will come into force from February 8, 2027.
Key Questions Answered
Under SEBI's revised framework, the 10-minute closing auction session in the equity cash market will run from 3:30 pm to 3:40 pm on trading days.
Most of the revised changes will take effect from December 7, 2026, while rules governing the transition of unexecuted limit and iceberg orders into the closing auction session will come into force from February 8, 2027.
For index derivatives, the settlement price will be based on the value of the underlying index calculated using the VWAP of constituent stocks during the last 30 minutes of continuous trading. For stock derivatives, clearing corporations will use the VWAP of the underlying stock over the last 30 minutes across all stock exchanges.
