NSE To Revise Trading Rules And Closing Session Timings From December

The National Stock Exchange is changing its closing auction session and trading rules starting December 7. The exchange announced these updates in two separate circulars following a review by the Securities and Exchange Board of India regarding market timings and settlement methods.

Key Changes

The closing auction session duration will now become ten minutes long, and the way the exchange finds closing prices for eligible stocks will also change. Derivatives trading hours will extend until 3:45 pm. The closing auction session will apply to securities that have derivatives contracts on any exchange, but it will not apply on the ex-date of a scheme of arrangement. The reference price will use the volume-weighted average price of trades executed between 3:15 pm and 3:30 pm, with an applicable price band of plus or minus three percent from that reference price.

Context

Stock exchanges regularly update their trading rules and session timings to keep markets fair and orderly for investors. These adjustments follow guidance and reviews from market regulators like the Securities and Exchange Board of India.