NSE Changes Stock Market Closing Rules From 7 December: New 10-Minute Closing Auction Session And F&O Expiry Settlement Explained

The National Stock Exchange (NSE) has announced changes to the equity cash and derivatives segments through two circulars issued on 6 November 2026. Most provisions will take effect from 7 December 2026.

However, the revised treatment of certain unexecuted orders will be implemented separately from 8 February 2027. The changes cover the closing price calculation for eligible shares, derivatives trading hours, futures price bands and final settlement prices of expiring contracts.

New NSE Closing Auction Session

The new 10-minute closing auction session (CAS) will operate from 3:30 pm to 3:40 pm on all trading days. The first minute will be used to calculate the reference price and transition from the continuous trading session (CTS).

Between 3:31 pm and 3:36 pm, traders can place, modify and cancel market and limit orders. Only limit orders will be accepted from 3:36 pm to 3:40 pm. The order-entry window will close randomly during the final two minutes. Order matching and trade confirmation will follow between 3:40 pm and 3:45 pm. The post-close session will run from 3:50 pm to 4 pm.

The mechanism will apply to securities with derivatives contracts listed on at least one stock exchange, subject to specified exceptions. For eligible shares, the reference price will be based on the volume-weighted average price (VWAP) between 3:15 pm and 3:30 pm. If no trades take place during this period, the last traded price of the day will be used.

The closing price will be determined through the auction's equilibrium price, with priority given to the price that allows the highest trading volume. If no equilibrium price emerges, the reference price will become the closing price. A 3% price band above or below the reference price will also apply to eligible securities during CAS.

NSE Revises F&O Trading Hours And Expiry Settlement

Stock and index derivatives trading will begin at 9:15 am. Stock derivatives will remain open until 3:45 pm, including on expiry days. Non-expiring index derivatives will also trade until 3:45 pm. However, index contracts expiring that day will stop trading at 3:30 pm. The trade modification window will remain open until 4:15 pm.

The final settlement calculation for expiring derivatives will also change. For index contracts, the settlement price will use the underlying index value calculated from the VWAP of constituent stocks between 3:00 pm and 3:30 pm. For stock derivatives, clearing corporations will use the underlying share's VWAP across all stock exchanges during the same period.

This is separate from the daily closing price calculation for derivatives, which will continue using the last half-hour VWAP, revised to 3:15 pm-3:45 pm.

Futures Price Bands And Order Rules Also Change

Stock and index futures will have price bands set at 3% above or below their respective reference prices between 3:30 pm and 3:45 pm. These reference prices will be calculated using the VWAP of the respective futures contracts between 3:15 pm and 3:30 pm. Cash and futures reference prices will be calculated independently and may differ.

The revised order treatment will take effect from 8 February 2027. The NSE has also asked trading members to update specified contract files before the new framework begins on 7 December 2026.

Only market and limit orders will be allowed during CAS. Stop-loss, immediate-or-cancel and disclosed quantity orders will not be permitted. Eligible unexecuted limit orders from the continuous trading session may carry forward, retaining their original timestamps and time.

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