HO/47/11/11(3)2025-MRD-POD2/I/2765/2026 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR HO/47/11/11(3)2025-MRD-POD2/I/2765/2026 To , All recognised Stock Exchanges All recognised Clearing Corporations Dear Sir/ Madam, Subject: Introduction of Closing Auction Session (CAS) in the Equity Cash Segment and certain modifications in the Pre-Open Auction Session Currently, the closing price of stocks in the equity cash segment of the Stock Exchanges is determined on the basis of the Volume Weighted Average Price (VWAP) of trades executed during the last thirty minutes of the Continuous Trading Session (CTS). 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 . January 16 , 2 2026 2.3. Provides equal and transparent access to all categories of investors, ensuring that the discovered closing price reflects the collective market consensus at the close of trading hours . 2.4. Facilitates passive funds to transact at the closing price of the stocks thereby reducing the tracking error. Considering the above and taking into account public comments received on consultation papers dated December 05, 2024 and August 22, 2025, deliberations in the Secondary Market Advisory Committee of SEBI and subsequent feedback received from various stakeholders including the Stock Exchanges , Clearing Corporations, Mutual Funds and FPIs , it is decided to introduce CAS in the equity cash segment of the Stock Exchanges . The f