NSE extends F&O trading hours by 10 minutes from August 3; market to close at 3:40 from August 3

NSE to extend futures and options trading till 3:40 pm from August 3. (Representational image)

The National Stock Exchange (NSE) on Monday, June 1, announced changes to trading modalities in the equity derivatives segment. As per ANI, the stock exchange announced that it will be extending the normal market closing time for futures and options (F&O) contracts by 10 minutes from August 3, 2026, following the introduction of a Closing Auction Session (CAS) in the equity cash segment.

NSE extends market close timing by 10 minutes

According to a circular rolled out by NSE, the normal market close time for equity derivatives will be extended to 3:40 pm from the current 3:30 pm, while the trade modification end time will remain unchanged at 4:15 pm.

The circular also highlighted that the move is aimed at aligning derivatives trading with the newly introduced Closing Auction Session in the cash market, which will run from 3:15 pm to 3:35 pm and determine the official closing price of stocks, as per ANI.

Under the revised framework, F&O traders will have an additional 10 minutes after the start of the cash market's closing auction to hedge, adjust, or unwind positions based on evolving price discovery in the underlying securities.

The extension is expected to reduce uncertainty around end-of-day pricing and help traders better manage exposure linked to the final cash market close.

Market opening time remains unchanged

However, there will be no change in the pre-open session timings, pre-open close, or the normal market opening time for the derivatives segment.

NSE, in their official statement, also said that the volume-weighted average price (VWAP) window used for close price computation in derivatives contracts will continue to be based on the last 30 minutes of trading but will now be calculated using trades executed between 3:10 pm and 3:40 pm, instead of the earlier 3:00 pm to 3:30 pm period.

Extended time to be applicable from August 3

It also mentioned that NSE will broadcast alerts on its NEAT trading terminals at the commencement of the Closing Auction Session, informing members that the operating price range for stock futures contracts is being revised and that outstanding orders outside the revised range may be cancelled as per exchange rules.

The exchange further added that the changes will become effective from August 3, and members have been advised to update relevant contract files and trading applications before implementation.

(With inputs from ANI)