SEBI proposes two options to change stock market closing timings

SEBI has put forward a new proposal on changing trading timings. It has suggested changes to the market closing time and the closing auction session, offering two separate options for the closing time and the trading window for equity derivatives, or F&O.

SEBI has proposed two options for the Closing Auction Session (CAS) and the equity derivatives market. Under Option A, normal trading in the cash market would continue till 3:30 pm. This would be followed by the closing auction session from 3:31 pm to 3:40 pm. Trading in the futures and options (F&O) segment could continue till 3:45 pm. This option would change the entire closing process compared to the current trading timings.

Under Option B, it is proposed that normal trading end at 3:15 pm. This would be followed by the closing auction session from 3:15 pm to 3:25 pm. However, the F&O market would continue to close at its current time of 3:30 pm. In other words, under this option, normal cash market trading would close first.

SEBI has also proposed reducing the time before the closing auction session begins. This is currently 5 minutes, which the proposal suggests cutting to 1 minute. In addition, it has suggested reducing the extended trading window available for equity derivatives after the auction ends, from 10 minutes to 5 minutes.

Importantly, SEBI has only put forward this proposal so far and has sought public opinion on it. This means the stock market will continue to operate according to its current trading timings for now. SEBI has invited suggestions and feedback from the public on this consultation paper until October 3, 2026. A final decision will be taken based on the responses received.