Archive · 31 Jul 2026
India's NSE to Adopt Closing Auction, Faces Brokerage Concerns
The National Stock Exchange of India will change how it decides the final price of some stocks.
Starting on August 3, 2026, stocks that have futures and options will close with a special auction from 3:15 to 3:35 pm.
This auction will pick one price for all orders.
Regular stocks will still close at 3:30 pm using the last 30 minutes of trades.
Equity derivatives will now finish trading at 3:40 pm instead of 3:30 pm.
A trader named Nithin Kamath says the new system could hurt his company’s earnings and make it harder to match the true market price at the end of the day.
NSE will switch to a Closing Auction Session (CAS) for F&O stocks starting Aug 3, 2026.
CAS will run 3:15‑3:35 pm, with order entry closing randomly 3:28‑3:30 pm.
Equity derivatives trading will close at 3:40 pm, extending from 3:30 pm.
Non‑F&O stocks will keep the current 3:30 pm close based on last 30 min VWAP.
Zerodha co‑founder Nithin Kamath warns the change could cut brokerage income 1‑5% and distort closing prices.
- Who
- Zerodha co‑founder Nithin Kamath and the National Stock Exchange of India
- What
- Implementation of a Closing Auction Session for F&O stocks and extended derivative closing time
- When
- Effective from August 3, 2026
- Where
- National Stock Exchange of India
- Why
- To improve final closing price discovery and align cash and derivatives markets
- Exchange
- National Stock Exchange of India
- Effective date
- August 3, 2026
- New closing session
- Closing Auction Session (CAS)
- Derivatives close time
- 3:40 PM
- Stakeholder concern
- Zerodha's Nithin Kamath