Futures And Options To Trade Until 3:40 PM From 3 August In NSE's Biggest Timing Change

Business Today India's National Stock Exchange (NSE) is adding ten minutes to the equity derivatives trading day. From 03 August 2026, the closing time for futures and options contracts will move from 3:30 PM to 3:40 PM. Morning schedules remain completely untouched with the market opening at 9:15 AM as usual.

The change applies to both index and stock derivative contracts. The deadline for trade modifications stays fixed at 4:15 PM.

Why NSE Is Making This Move

The extension is designed to synchronise the derivatives segment with a new Closing Auction Session (CAS) being introduced in the equity cash market on the same date.

The cash market's Closing Auction Session will run between 3:15 PM and 3:35 PM, establishing the official closing price for underlying stocks through a dedicated auction process.

By keeping the derivatives window open until 3:40 PM, traders get a meaningful buffer after the auction concludes to adjust positions based on freshly discovered closing prices.

How Price Bands And Settlement Change

The NSE will recalibrate stock futures price bands just before the Closing Auction Session begins each day. The new band will be set at plus or minus 3% of a freshly calculated reference price and will remain static throughout the auction window. Any pending orders falling outside the revised thresholds will be cancelled automatically under exchange protocols.

The volume-weighted average price (VWAP) calculation window used for derivative contract settlement is also shifting:

• Old window: 3:00 PM to 3:30 PM.

• New window: 3:10 PM to 3:40 PM.

• Duration remains unchanged at thirty minutes.

The NSE will send automated alerts through NEAT trading terminals when the Closing Auction Session starts, notifying brokerage members that price bands are being reset.

What Members Need To Do

Brokerage firms and trading members are required to update their trading systems and contract files before 3 August. The exchange has confirmed the timeline and expects technical preparations to be completed ahead of the launch date.

Also Read - LIC Eyes Entry Into Fintech Space; Strategic Investment Options Under Review

BSE Adds IT Index Derivatives

Separately, the BSE has introduced futures and options on its Focused IT Index, tracking 14 major domestic technology companies. Key details from the launch:

• 172 trading members participated in the opening session.

• Initial trading volume reached approximately ₹148 crore.

• Contracts are cash settled across three consecutive monthly expiries.

• Expiry falls on the final Thursday of each expiration month.

Information technology companies represent roughly 6% of total BSE market capitalisation with the broader sector accounting for over 250 listed companies and approximately 6% of total foreign portfolio investment in Indian equities.

Source:

Livemint