TaxTMI 
TaxTMI 
Introduction of Closing Auction Session (CAS) in the Equity Cash Segment and certain modifications in the Pre-Open Auction Session
X X X X Extracts X X X X
X X X X Extracts X X X X
....d during the last thirty minutes of the Continuous Trading Session (CTS). 2. Globally, in major jurisdictions the closing price of stocks is determined based on CAS, considering the following: 2.1. CAS aggregates market interest into a single pool of liquidity, thereby providing a fair and transparent closing price and improving the efficiency of execution for large orders. 2.2. The significance of a fair and transparent closing price, especially since it is used as the reference for settlement in derivatives, index computation, mutual fund net asset value (NAV) determination, etc. 2.3. Provides equal and transparent access to all categories of investors, ensuring that the discovered closing price reflects the collective market ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ication/ cancellation for market orders, Random Close in the last 2 minutes 3:25 p.m. 5 mins 4 Order matching 3:30 p.m. 5 mins 4.2.2. The order entry session shall close randomly anytime between 3:28 p.m. to 3:30 p.m. Such random closure shall be system driven. 4.2.3. The equity derivatives segment shall continue to operate up to 3:40 p.m. on all trading days. 4.2.4. The post close session in the cash segment shall operate between 3:50 p.m. to 4:00 p.m., where trades shall be executed at the closing price of stocks. 4.2.5. The closing price of stocks in the cash segment for trading in any special trading sessions of the Stock Exchanges shall also be determined based on CAS. The duration of CAS in such specia....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es and Clearing Corporations (SECC) dated December 30, 2024, shall not be applicable during the period from 3:15 p.m. to 3:40 p.m., and shall be applicable in the respective duration in the CTS. 4.4.3. The Stock Exchanges, within 30 days from the date of the circular, shall jointly formulate a Standard Operating Procedure (SOP), in consultation with SEBI, to ensure alignment of the price band of stock futures with the price band applicable during CAS. 4.5. Types of orders allowed in CAS: 4.5.1. Only limit orders and market orders shall be allowed and both shall be reckoned for computation of equilibrium price. 4.5.2. Iceberg orders shall not be allowed, i.e., orders shall be disclosed in full quantity. 4.5.3. Stop loss orders....
X X X X Extracts X X X X
X X X X Extracts X X X X
....xecuted limit orders of the CTS shall be carried forward to CAS, except the following: 4.8.1.1. Stop loss orders 4.8.1.2. Iceberg orders 4.8.1.3. Orders having prices beyond the price bands applicable in CAS. 4.8.2. The limit orders carried over from the CTS to CAS shall have a higher time priority than limit orders placed during CAS. 4.8.3. The limit orders carried over from the CTS to CAS can be modified, however, time priority after the modification shall be changed. 4.9. Calculation of settlement prices by Clearing Corporations (CCs) for stock derivatives and index derivatives: 4.9.1. Since, the methodology for computation of the closing price for stocks shall undergo a change, para 1.1.9 and para 3.1.2.7 of Chapter....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Indicative imbalance quantity based on market orders of the stock 4.12.5. Indicative Index Stock Exchanges may disseminate additional relevant information, if any, at their discretion. 5. Alignment of the Pre-Open Auction Session framework with CAS in the cash segment and the derivative segment: 5.1. To ensure alignment of the pre-open auction session with CAS, the relevant paragraphs with respect to 'Framework for the Call Auction in the Pre-Open Session' as specified under para 17.1 of Chapter 1 of the Master Circular for Stock Exchanges and Clearing Corporations (SECC) dated December 30, 2024, shall stand modified as under: "17.1.2: The pre-open session shall be for a period of 15 minutes from 9:00 a.m. to 9:15 a.m. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the order of price time priority. 17.1.14. The following information shall be disseminated during pre-open session: 17.1.14.1. Indicative equilibrium price of the stock 17.1.14.2. Indicative cumulative buy and sell quantity of the stock 17.1.14.3. Indicative imbalance quantity of the stock at equilibrium price 17.1.14.4. Indicative imbalance quantity based on market orders of the stock 17.1.14.5. Indicative Index Stock Exchanges may disseminate additional relevant information, if any, at their discretion." 6. Implementation timeline: 6.1. The framework for CAS outlined at para 4 shall be implemented in the cash segment from August 03, 2026. 6.2. The changes in Pre-Open ....