SEBI to Roll Out Closing Auction Session for Equity Cash Segment from August 2026

• SEBI will introduce a Closing Auction Session (CAS) in the equity cash segment starting August 3, 2026, to determine closing prices.
• CAS is a 20-minute trading period (3:15 pm to 3:35 pm) designed to find a single, fair closing price for securities.
• Initially, CAS will apply only to stocks with derivative contracts; other securities will continue using the VWAP method.
• The new system aims to aggregate liquidity and provide a more transparent closing price, aligning with global market practices.
• Changes to the pre-open auction session will also be implemented from September 7, 2026, to align with CAS.

Why It Matters: SEBI is implementing a phased rollout of a Closing Auction Session to enhance transparency in equity closing prices.