The National Stock Exchange will implement a new system for determining closing prices in F&O stocks from tomorrow, aiming to improve price discovery and align with global practices.
The National Stock Exchange (NSE) is set to introduce a new method for closing price discovery through the Closing Auction Session (CAS) from tomorrow. This change will affect eligible Futures & Options (F&O) stocks in the cash market, with the aim of improving price discovery and aligning Indian markets with global practices. Under this new framework, non-F&O stocks will continue regular trading until 3:30 pm, while F&O segment stocks will see continuous trading until 3:15 pm, followed by the Closing Auction Session from 3:15 pm to 3:35 pm. Stock and index F&O trading will continue until 3:40 pm.
This move will extend equity derivatives trading by 10 minutes, resulting in different closing times across market segments. The extension of F&O trading hours is aimed at creating a smoother link between the cash and derivatives markets, while enhancing efficiency and improving the accuracy of closing price determination. Previously, closing prices were calculated using the Volume Weighted Average Price (VWAP) of trades executed during the final 30 minutes of the trading session.
Source:
Akashvani News
