SEBI's revised stock market trading framework comes into effect today, August 3, 2026, bringing changes to trading hours for the equity derivatives segment and introducing a Closing Auction Session (CAS) for Futures and Options (F&O)-eligible stocks.
The new framework aims to improve price discovery, enhance market efficiency, and make the closing price determination process more transparent. Investors trading in F&O stocks and derivatives should be aware of the revised market timings.
SEBI has introduced a Closing Auction Session (CAS) for F&O-eligible (Category I) stocks in the equity cash segment effective from today August 3, 2026.
Under the revised schedule:
Regular trading for F&O-eligible stocks will continue until 3:15 PM.
A transition period will be held from 3:15 PM to 3:20 PM.
CAS Order Entry I: 3:20 PM to 3:25 PM
CAS Order Entry II: 3:25 PM to 3:30 PM (market orders cannot be modified or cancelled during this phase).
Order matching: 3:30 PM to 3:35 PM, with the auction ending randomly during the final two minutes.
The price discovered through the Closing Auction Session will become the official closing price for F&O-eligible stocks.
Trading hours for non-F&O equity cash stocks remain unchanged, with the market continuing to close at 3:30 PM.
Along with the Closing Auction Session, SEBI has extended trading hours for the equity derivatives segment.
Under the revised framework:
Equity derivatives (F&O) trading will now continue until 3:40 PM, an extension of 10 minutes from the earlier closing time.
Trading hours for all other market segments remain unchanged.
The extension aligns derivatives trading with the revised closing price discovery process in the cash market.
SEBI has also revised the pre-open session timings.
The updated schedule is:
Order entry: 9:00 AM to 9:07 AM
Order matching: 9:07 AM to 9:15 AM
Regular market opens: 9:15 AM
According to SEBI, the revised framework aims to:
Improve price discovery through an auction-based closing mechanism.
Enhance execution efficiency by aggregating market liquidity.
Ensure fair and transparent determination of closing prices.
Provide equal access to all investors.
Reduce tracking errors for passive investment funds.
Align India's market structure with global market practices.
SEBI's revised trading framework takes effect today, introducing a Closing Auction Session for F&O-eligible stocks, extending equity derivatives trading until 3:40 PM, and revising pre-open session timings. While trading hours for non-F&O equity stocks remain unchanged, investors in F&O stocks and derivatives will need to follow the new market schedule from today.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Aug 3, 2026, 11:30 AM IST
Rakesh Deshmukh
Rakesh Deshmukh is a financial content specialist with around 3 years of experience writing impactful content across equities, mutual funds, IPOs, and personal finance. At Angel One, he decodes real-time market trends and breaking news, helping investors and traders stay updated. He also helps investors make informed decisions by simplifying market fundamentals and technical analysis. He holds a bachelor’s degree in commerce.
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