SEBI revamps closing auction starting Dec 7 and Feb 8
SEBI is revamping how the closing auction works for stocks, with most changes starting December 7, 2026.
The familiar 10-minute session at the end of each trading day will now have new steps for handling orders and figuring out settlement prices.
If you're trading, expect some changes in how your leftover limit and iceberg orders are managed starting February 8, 2027.
SEBI details 3 part auction rules
The closing auction will now run in three parts: first, a quick calculation and order transition at 3:30pm then five minutes to place market and limit orders; finally, a limit-only window that ends randomly between 3:38pm and 3:40pm.
Unexecuted limit orders pending at the end of continuous trading generally carry into the closing auction session, except stop-loss orders and orders priced outside the applicable auction-session price bands.
Unexecuted iceberg orders within the applicable price bands will be converted into fully disclosed limit orders when carried forward, unless the market participant opted out when placing the original order, and older orders get priority over new ones, making the whole process smoother for everyone involved.