SEBI to Introduce Closing Auction Session for Derivative-Linked Stocks from August 2026

The Securities and Exchange Board of India (SEBI) will introduce a 20-minute Closing Auction Session (CAS) from August 3, 2026, to determine closing prices in the equity cash market. Initially, CAS will apply only to stocks with derivative contracts, while other stocks will continue using the current volume-weighted average price (VWAP) method. The CAS aims to improve price discovery and transparency by adopting an auction-based system aligned with global practices, featuring phases for reference price calculation, order entry, and random order closure to prevent manipulation.