The Securities and Exchange Board of India (SEBI) on January 16, 2026, issued a circular regarding the introduction of the Closing Auction Session (CAS) in the Equity Cash Segment and certain modifications in the Pre-Open Auction Session.
The following has been stated: -
•SEBI has introduced a uniform Closing Auction Session (CAS) of 20 minutes (3:15–3:35 p.m.) to determine closing prices in the cash segment using an equilibrium price mechanism based on VWAP/LTP reference prices.
•CAS allows only limit and market orders, excludes stop-loss and iceberg orders, and applies a ±3% price band from the reference price.
•Unexecuted eligible limit orders from the continuous trading session may carry forward to CAS with higher time priority.
•The framework aligns price bands and settlement prices for equity and index derivatives, with SOPs to be jointly issued by Stock Exchanges and Clearing Corporations.
•The pre-open auction session framework is also aligned with CAS, with revised timings, order rules, and dissemination norms.
•CAS will be implemented from August 03, 2026, with pre-open changes from September 07, 2026, and enhanced surveillance and regulatory amendments mandated.
[Circular No.:HO/47/11/11(3)2025-MRD-POD2/I/2765/2026]
