GUWAHATI: Traders in India’s futures and options (F&O) market will now have an additional 10 minutes for trading as the National Stock Exchange (NSE) has extended the closing time for equity derivatives from 3:30 PM to 3:40 PM.
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The change comes as NSE introduces a new Closing Auction Session in the cash market, aimed at ensuring more transparent and accurate closing prices for stocks. The auction session will run from 3:15 PM to 3:35 PM.
Since derivatives contracts are linked to prices in the cash market, NSE has extended F&O trading hours to allow market participants to respond to price movements emerging from the closing auction before the end of the trading session.
Other trading timings remain unchanged. The equity market will continue to open at 9:15 AM, with the pre-open session running from 9:00 AM to 9:15 AM. The order modification window will continue until 4:15 PM.
The revised schedule applies to index and stock derivative contracts linked to securities that are already available for F&O trading on NSE. The exchange issued a circular regarding the change on May 30, giving brokers and traders time to make necessary system updates.
NSE said the move aims to improve coordination between the cash and derivatives segments during the closing period and reduce discrepancies between prices in the two markets.
A second phase of changes related to the pre-open auction framework is expected to be implemented from September 7.
The Bombay Stock Exchange (BSE) has not announced any similar change so far.