SEBI Proposes Closing Auction Session for Better Price Discovery

Imagine the stock market has a special closing time each day.

Right now, they figure out the final price using the average price from the last half hour.

SEBI wants to try a new way, like an auction.

First, they'll check the prices between 3:00 and 3:15 PM.

Then, for a short time, people can place orders, and at the end, the system matches all the buyers and sellers to set the price.

This might help big investors and make the market less jumpy at the end of the day.

This is similar to what's used in other countries, such as the United States and Europe.

It's starting with stocks that are easier to trade, and could change if it doesn't work well.