NEW Mint
Mon 14 Sep 2026 01:47:06 PM
Mint Explainer| What do Sebi’s proposed changes to closing auction mean for the markets?
SUMMARY
**Sebi's Proposed Changes to Closing Auction**
SEBI has proposed modifications to the closing price mechanism on stock exchanges. Currently, the closing price is determined through a Closing Session Auction (CSA) during the last 15 minutes of trading. SEBI suggests extending participation and improving transparency in this process. The changes aim to reduce price manipulation during closing auctions, which significantly impact mutual fund NAVs, index calculations, and derivative settlements. SEBI also proposes allowing broader order types and enhancing surveillance mechanisms to ensure fair price discovery during the closing session, benefiting retail and institutional investors alike.
SEBI has proposed modifications to the closing price mechanism on stock exchanges. Currently, the closing price is determined through a Closing Session Auction (CSA) during the last 15 minutes of trading. SEBI suggests extending participation and improving transparency in this process. The changes aim to reduce price manipulation during closing auctions, which significantly impact mutual fund NAVs, index calculations, and derivative settlements. SEBI also proposes allowing broader order types and enhancing surveillance mechanisms to ensure fair price discovery during the closing session, benefiting retail and institutional investors alike.
Relevant For:
Prelims + Mains
GS - III
Economy
Focus Area
SEBI regulation
Closing auction
Stock exchanges
Market efficiency
Investor protection
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