A big change is coming for stock market investors and intraday traders. From August 3, 2026, the way closing prices are determined in the Indian stock market will change.
According to Zerodha, SEBI is introducing a Closing Auction Session (CAS) to make stock closing prices more accurate and transparent.
While the market opening time will remain the same, traders should be aware of the new closing schedule and updated intraday square-off timings.
New Stock Market Closing Timings
As per Zerodha, these will be the new market timings from August 3, 2026:
F&O Stocks: Regular trading will end at 3:15 PM, followed by the new Closing Auction Session (CAS).
Non-F&O Stocks: Trading will continue to close at 3:30 PM, with no change.
Index and Stock F&O Contracts: Trading will end at 3:40 PM.
New Auto Square-Off Timings for Intraday Traders
If you trade using the MIS (Margin Intraday Square-off) facility, note these updated auto square-off timings:
F&O Stocks (under CAS): 3:10 PM
Non-F&O Stocks: 3:25 PM
Index and Stock F&O Contracts: 3:25 PM
If you do intraday trading, make sure to adjust your trading strategy to avoid automatic position closures.
Why the Closing Price Matters
A stock’s closing price is much more than the final price of the day. It plays a key role in several important market calculations, including:
Calculating benchmark indices like Nifty and Sensex
Determining the NAV of mutual funds
Settling F&O contracts on expiry
Updating your portfolio value and profit/loss reports
Valuing pledged shares used for margin trading
Because of this, an accurate closing price is important for both investors and traders.
Why SEBI Introduced the Closing Auction Session
According to Zerodha, the last traded price (LTP) is not always the true value of a stock. For example, if a stock trades between ₹1,000
and ₹1,010 throughout the day but someone sells a few shares at ₹980 just before the market closes, that single trade should not decide the stock’s closing price.
Until now, exchanges used the Volume Weighted Average Price (VWAP) method to reduce such distortions.
From August 3, 2026, SEBI’s new Closing Auction Session (CAS) will replace this process, helping determine a fairer and more transparent closing price.
If you invest regularly or trade intraday, it is important to understand these new rules before they take effect.
They could impact your trading decisions, square-off timings, and the way stock prices are finalized at the end of each trading day.
