NSE to Extend Market Closing Timing for F&O Transactions

National Stock Exchange Extends Market Closing Timing for Equity Derivatives Segment

The National Stock Exchange (NSE) has announced that the normal market closing timing for the equity derivatives segment will be extended by 10 minutes, until 3:40 PM, as part of the rollout of the Closing Auction Session (CAS).

According to a circular issued by NSE on Friday, the normal market closing time for equity derivatives contracts will be extended to 3:40 PM, aligning derivatives market operations with the newly introduced closing auction mechanism in the cash segment. Other session timings, including the pre-open session and trade modification window, will remain unchanged.

As part of the operational changes, NSE will broadcast notifications whenever the operating price range for stock futures contracts is reset following the commencement of the Closing Auction Session in the cash market. Outstanding orders that fall outside the revised price range will be automatically cancelled in accordance with existing exchange regulations.

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The exchange clarified that there will be no change in the methodology used for computing closing prices of derivatives contracts. However, the volume-weighted average price (VWAP) window used for close-price determination will now be calculated using trades executed between 3:10 PM and 3:40 PM, reflecting the revised market close timing.

NSE also stated that the functional changes arising from the implementation will be made available for testing during upcoming mock trading sessions. Brokers have been advised to update relevant contract files in their trading applications before the effective date to ensure seamless operations.

The introduction of the Closing Auction Session is a significant change in market structure and is expected to enhance price discovery, improve market integrity at the close, and bring domestic market practices closer to international standards.

Implementation Timeline

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The Closing Auction Session will run for 20 minutes from 3:15 PM to 3:35 PM on all trading days. From 3:15 PM to 3:20 PM, there will be a transition phase from Continuous Trading Session (CTS) to CAS, during which the reference price will be calculated based on the VWAP of trades between 3:00 PM and 3:15 PM. Between 3:20 PM and 3:25 PM, both market and limit orders can be entered. From 3:25 PM to 3:30 PM, only limit orders will be allowed, with no modification or cancellation of market orders. The order entry session will close randomly anytime between 3:28 PM and 3:30 PM.