Closing Auction Session (New)

Pursuant to the applicable regulatory and Exchange guidelines, the National Stock Exchange of India Limited (NSE), BSE Limited and MSEI will introduce the Closing Auction Session (CAS) in the Equity Cash segment for securities that are also available in the Equity Derivatives segment. To read the circulars, please click here…..

Consequently, there will be changes in Exchange trading timings, order handling and the Company’s RMS Intraday Square-off timings. You are requested to take note of the following changes and manage your positions and pending orders accordingly.

1. What is changing?

2. Key timing changes

The key timing changes are summarized below:

* During 3:25 PM to 3:30 PM, only limit orders will be allowed. Market orders cannot be entered, modified or cancelled. The order-entry period will close randomly during the last two minutes, i.e., anytime between 3:28 PM and 3:30 PM.

3. RMS Intraday Square off Timing:

4. Key changes for CAS-eligible securities in the Equity Cash segment

9:15 AM to 3:15 PM – Continuous Trading Session

• Normal continuous trading will remain available in CAS-eligible securities up to 3:15 PM.

3:15 PM to 3:20 PM – Reference Price Calculation / Transition Period

• Fresh order entry, modification and cancellation will not be permitted.
• The Exchange will determine and disseminate the CAS reference price and revise the applicable price band.
• Eligible unexecuted limit orders within the revised price band will be carried forward to CAS with their original time priority.
• Stop-loss orders, disclosed quantity / iceberg orders and orders outside the revised price band will be cancelled by the Exchange.

3:20 PM to 3:25 PM – CAS Order Entry Period

• Fresh order entry, modification and cancellation will be permitted for both limit and market orders.
• Limit orders must be placed within the applicable price band of +/-3% of the CAS reference price.
• Stop-loss, Immediate-or-Cancel (IOC) and disclosed quantity / iceberg orders will not be permitted.

3:25 PM to random closure between 3:28 PM and 3:30 PM

• Only limit orders may be entered, modified or cancelled.
• Fresh market orders and modification or cancellation of existing market orders will not be permitted.
• Orders submitted after random closure will be rejected by the Exchange.

After random closure up to 3:35 PM – Order Matching and Trade Confirmation

• Orders will be matched at a single equilibrium price determined by the Exchange.
• Any order remaining unexecuted after the matching phase will be cancelled by the Exchange.
• Requests for cancellation of trades executed during CAS will not be permitted.

5. Impact on clients

• CAS will be implemented in a phased manner and will initially apply to stocks on which derivative contracts are available.
• The applicable price band during CAS will be +/-3% of the reference price.
• Only limit and market orders will be permitted during the applicable CAS order-entry window; iceberg / disclosed quantity and stop-loss orders will not be allowed.
• The closing price computation for stock derivative contracts will continue under the existing methodology; however, the VWAP calculation window will be based on trades executed between 3:10 PM and 3:40 PM.
• For other stocks, closing price determination will continue through the VWAP of the last 30 minutes of the Continuous Trading Session.

6. Action required from clients

• Square off Intraday positions before the revised RMS square-off time (as mentioned above).
• Review pending orders before 3:15 PM, particularly orders in CAS-eligible securities and stock futures.
• Be aware that eligible limit orders may be carried forward to CAS, while stop-loss, disclosed quantity / iceberg and out-of-band orders will be cancelled by the Exchange.
• Manage your trading, positions and order placement in accordance with the revised session and risk-management timings.