What happened
The Securities and Exchange Board of India (SEBI) issued a circular on 15 October 2026 reviewing certain aspects of the Closing Auction Session, market timings and the settlement methodology for derivatives contracts. The circular number is HO/47/11/11(3)2025-MRD-POD2/I/23843/2026.
A closing auction session is a short window at the end of the trading day in which orders are collected and matched to arrive at a closing price. Derivatives are contracts, such as futures and options, whose value depends on an underlying asset. Settlement methodology is the way these contracts are closed out and paid up on expiry.
What it means for you
The circular covers three areas: the closing auction session, trading hours and how derivatives contracts are settled. If you trade in futures and options, check the full circular on the SEBI website, and any notices from your broker or the exchanges, for the specific changes and the dates from which they apply.
Background
SEBI is the regulator of India’s securities markets and issues circulars to set or revise rules that exchanges, brokers and other market participants must follow. This circular was issued by its market regulation department.
