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SEBI changes closing price calculation methodology for equity cash segment

Published on Jan 17, 2026 12:16

In a recently released circular, the Securities and Exchange Board of India (SEBI) said that the closing auction session (CAS) in the equity cash segment and certain modifications in the pre-open auction session would be introduced in the domestic equity markets.

SEBI said that it has decided to change the way closing prices of shares are calculated in the equity cash market. Exchanges will shift from the current system, which is based on the volume-weighted average price of trades executed in the final 30 minutes, to a Closing Auction Session (CAS).

At present, closing prices are calculated using trades between 3:00 pm and 3:30 pm, a method that the regulator noted can sometimes lead to price distortions, particularly when large orders are placed close to market close. Most global markets, by contrast, rely on auction-based mechanisms to set closing prices.

The capital market regulator said that this method can sometimes distort prices, especially for large orders placed near market close. Globally, most major markets already use an auction-based system to decide closing prices.

Under the revised framework, the CAS will operate for 20 minutes from 3:15 pm to 3:35 pm on all trading days. The session will include distinct phases for reference price discovery, order entry, and order matching, with random order closure in the final two minutes to curb potential manipulation.

In the first phase, the Closing Auction Session (CAS) will be introduced only for stocks with active derivatives contracts, while other shares will continue to follow the existing VWAP-based closing price mechanism. The auction�s reference price will be derived from the VWAP of trades executed between 3:00 pm and 3:15 pm; if no trades occur during this period, the stock�s last traded price will serve as the reference.

During the CAS, investors may place market and limit orders, though stop-loss and iceberg orders will not be allowed. The final closing price will be determined using an equilibrium price mechanism that identifies the price at which the highest trading volume can be matched. In cases where multiple prices meet this criterion, clearly defined rules will be applied to arrive at the final closing price.

SEBI said the shift will enhance the transparency and robustness of closing prices, which are critical for derivatives settlement, index computation, and mutual fund NAV calculations. The regulator also highlighted that an auction-based close should enable passive funds and large institutional investors to execute trades at fairer prices with lower impact costs.

Concurrently, SEBI has also decided to align the pre-open auction framework with the new system. The pre-open session will continue to run from 9:00 am to 9:15 am, with structured phases for order entry and matching, and a random closure in the final two minutes.

The CAS will be rolled out from August 3, 2026, while the revised pre-open framework will take effect from September 7, 2026. Exchanges and clearing corporations have been directed to upgrade systems, enhance surveillance, and issue detailed operational guidelines ahead of implementation.

SEBI added these changes are aimed at improving price discovery, protecting investors, and bringing Indian markets closer to global best practices.

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Embassy Office Parks REIT fixes record date for distribution

Published on Jan 16, 2026 19:27
Embassy Office Parks REIT has fixed 11 February 2026 as record date for payment of distribution to unitholders which will be paid on or before 18 February 2026.

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BSE rolls out four new midcap factor indices

Published on Jan 16, 2026 10:36
BSE Index Services launched four new factor indices based on the BSE 150 Midcap Index, adding to its range of benchmarks aimed at passive fund managers and institutional investors.

The new indices are the BSE Midcap 150 Enhanced Value 30, Momentum 30, Low Volatility 30 and Quality 30. Each index tracks 30 stocks selected from the BSE 150 Midcap universe using distinct factor-based criteria. Individual stock weights are capped at 5%, and the indices will be reviewed and reconstituted on a quarterly basis.

All four indices have been backdated to 20 June 2005, with a base value of 1,000. Stocks included in the indices must also meet a screening requirement of 100% trading frequency.

Ashutosh Singh, MD & CEO of BSE Index Services, highlighted the significance of these indices, stating, "Mid-caps are a critical building block in long-term portfolios, with this launch the BSE factor indices now span large caps, large-mid, broad market 500 universe and mid-caps. The objective is to create a seamless and institution grade investable factor continuum while also enabling ETF and passive fund managers to build coherent, market-wide strategies aligned to different risk-return objectives."

The indices are intended for use in passive investment products such as exchange-traded funds and index funds. They can also be used as benchmarks for portfolio management services, mutual fund schemes and other managed portfolios.

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Angel One fixes record date for interim dividend

Published on Jan 16, 2026 08:59
Angel One has fixed 21 January 2026 as record date for first interim dividend of Rs 23 per share for FY 2025-26. The dividend will be paid on 13 February 2026.

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Zensar Technologies fixes record date for interim dividend

Published on Jan 16, 2026 08:57
Zensar Technologies has fixed 29 January 2026 as record date for interim dividend, if declared.

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Insecticides India fixes record date for interim dividend

Published on Jan 15, 2026 13:09
Insecticides India has fixed 06 February 2026 as record date for payment of interim dividend for FY26, if declared.

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ICICI Prudential Asset Management Co fixes record date for interim dividend

Published on Jan 15, 2026 13:07
ICICI Prudential Asset Management Co has fixed 21 January 2026 as record date for payment of interim dividend of Rs 14.85 per share.

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Bank of Maharashtra fixes record date for interim dividend

Published on Jan 13, 2026 15:31
Bank of Maharashtra has fixed 20 January 2026 as record date for payment of interim dividend of Re 1 per share of Rs 10 each for FY 2025-26.

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BSE, NSE to remain closed on Thursday due to Maharashtra civic polls

Published on Jan 13, 2026 11:25
Trading on Indian stock exchanges will remain suspended on Thursday, 15 January 2026, as the Bombay Stock Exchange and the National Stock Exchange stay closed in view of the Maharashtra municipal corporation elections. The closure will apply across equity, derivatives and commodity segments.

Contracts scheduled to expire on January 15 will be settled a day earlier, in line with exchange norms. The Maharashtra government has declared a public holiday to facilitate voting across 29 municipal corporations, which has also led to the shutdown of banking and clearing operations in the state. Settlement holidays are typically announced during elections or major public events when normal banking services are disrupted, and most banks are expected to remain closed on the day.

With this addition, Indian stock exchanges will be shut for 16 days in 2026, excluding regular weekend holidays. January 26 will be the second market holiday this month.

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DCM Shriram fixes record date for 2nd interim dividend

Published on Jan 13, 2026 10:18
DCM Shriram has fixed 24 January 2026 as record date for 2nd interim dividend for FY 2025-26.

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HCL Technologies fixes record date for interim dividend

Published on Jan 13, 2026 10:17
HCL Technologies has fixed 17 January 2026 as record date for interim dividend. The dividend will be paid on 27 January 2026.

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NLC India fixes record date for interim dividend

Published on Jan 12, 2026 19:10
NLC India has fixed 16 January 2026 as record date for the purpose of ascertaining the members entitled for interim dividend of Rs 3.60 per share for the FY 2025-26.

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TCS fixes record date for 3rd interim dividend and special dividend

Published on Jan 12, 2026 16:48
Tata Consultancy Services has fixed 17 January 2026 as record date for payment of third interim dividend of Rs 11 per share and a special dividend of Rs 46 per equity share of Re 1 each of the company. Both dividends will be paid on 03 February 2026.

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