India Extends F&O Trading Hours and Introduces Closing Auction

Effective 3 August 2026 the Indian stock market will change the operating schedule for Futures and Options (F&O) contracts. Trading in the F&O segment will continue until 3:40 p.m., extended by ten minutes from the previous 3:30 p.m. deadline. The cash‑market component for F&O‑linked stocks will close at 3:15 p.m., after which a Closing Auction Session (CAS) will determine the day’s closing price, replacing the earlier volume‑weighted‑average‑price (VWAP) method.

Non‑F&O securities will retain the existing schedule, with cash‑market trading ending at 3:30 p.m. The CAS will run in stages: preparation from 3:15 to 3:20 p.m., acceptance of market and limit orders from 3:20 to 3:25 p.m., and limited order modifications from 3:25 to 3:30 p.m., followed by the auction price‑matching process. The reforms aim to improve price discovery and reduce volatility at market close, enhancing overall market transparency.