Sebi Plans Closing Auction Session for Equity Markets

The Securities and Exchange Board of India (Sebi) is introducing a new way to determine the closing prices of stocks.

Instead of using the average price of the last 30 minutes of trading, they will now use a closing auction session.

This means all buy and sell orders will be collected and matched at a single price at the end of the day.

This new system aims to make the closing price more stable and fair.

It will be implemented in phases, starting with stocks that have derivative contracts.

The auction will last 20 minutes, and only certain types of orders will be allowed.

If there aren't enough orders, the system will fall back to other methods to find the closing price.

This change brings India's stock market closer to global standards.