SEBI to Revolutionize Stock Closing Prices with New Auction Framework

• SEBI introduces a Closing Auction Session (CAS) in the equity cash segment to enhance transparency and robustness in closing price discovery.
• The CAS will be implemented in phases, initially covering cash market stocks with associated derivative contracts, while others retain the VWAP method.
• Operating from 3:15 pm to 3:35 pm, the 20-minute CAS will include phases for order entry, random closure, and order matching.
• The reference price for CAS will be based on VWAP from 3:00 pm to 3:15 pm, with a price band of plus or minus 3 percent.
• The CAS framework will be effective from August 3, 2026, and a revised pre-open auction framework from September 7, 2026.

Why It Matters: SEBI's new Closing Auction Session aims to align India's market with global practices for transparent price discovery.