India's SEBI extends F&O trading and adds closing auction from Aug 3

Effective Monday, 3 August 2026, the Securities and Exchange Board of India (SEBI) will change trading hours for Futures and Options (F&O)‑eligible stocks. Regular trading will end at 3:15 pm, followed by a 5‑minute transition (3:15‑3:20 pm). A new Closing Auction Session will run from 3:20 pm to 3:30 pm in two phases (order entry 3:20‑3:25 pm and 3:25‑3:30 pm); orders cannot be modified or cancelled during the second phase. Order matching occurs from 3:30 pm to 3:35 pm, and the auction price becomes the official closing price. The F&O segment’s trading window is extended by ten minutes, closing at 3:40 pm instead of 3:30 pm. The pre‑open session is also revised: order entry from 9:00 am to 9:07 am, matching from 9:07 am to 9:15 am, with regular trading starting at 9:15 am. Non‑F&O cash stocks keep their existing schedule, closing at 3:30 pm. SEBI says the changes aim to improve price discovery, increase liquidity, reduce tracking errors for passive funds and bring India’s market structure in line with global best practices.