- SEBI may allow brokers to accept after-market orders during 3:15-3:20 p.m. window
- Orders received in this period would be sent to market after 3:20 p.m. for CAS
- This change aims to boost participation and price discovery in the Closing Auction Session
The Securities and Exchange Board of India (SEBI) is considering allowing brokers to accept after-market orders (AMOs) during the 3:15-3:20 p.m. transition window of the Closing Auction Session (CAS), sources said.
Under the proposed mechanism, brokers would be permitted to accept orders from clients during the 3:15-3:20 p.m. window, with these orders subsequently pushed into the market after 3:20 p.m., when the order-entry phase of the CAS begins, sources told NDTV Profit.
The move is aimed at improving participation and price discovery during the newly introduced closing auction mechanism.
The rollout of the proposed change is being prepared and could begin around September 1, sources added.
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The CAS, which came into effect from August 3, runs from 3:15 p.m. to 3:35 p.m. for stocks in the cash segment that have derivative contracts.
The first five minutes, from 3:15 p.m. to 3:20 p.m., currently serve as the transition period from the continuous trading session to CAS and for calculating the reference price.
At present, order entry in CAS begins at 3:20 p.m., with both market and limit orders allowed until 3:25 p.m. From 3:25 p.m. to 3:30 p.m., only limit orders can be entered, while the order-entry period closes randomly between 3:28 p.m. and 3:30 p.m. Order matching and trade confirmation take place from 3:30 p.m. to 3:35 p.m.
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