NSE decided to introduce a new pre-open auction session to help it determine the fair opening price of stocks. This new rule will apply across the equity cash market, SME, InvITs/REITs, and derivatives.
While the timing of the pre-open market remains the same, from 9:00 AM to 9:15 AM, the only changes NSE will make are how orders are entered, accepted, modified, cancelled, and matched during this period. Let’s learn the new timings.
New Pre-Open Session Timings
9:00 AM to 9:05 AM:
During these 5 minutes, traders can place market or limit orders, modify, and cancel them. Before, the time was 9:00 AM to 9:08 AM to place market or limit orders, modify, or cancel them, which has now changed to 9:00 AM to 9:05 AM.
9:05 AM – 9:10 AM:
During 9:05 AM – 9:10 AM, investors can only place limit orders, modify, or cancel orders, but cannot place market orders.
9:10 AM – 9:12 AM:
During this time, NSE will match the market and limit orders received during the early stages and will decide the opening price of the stock.
9:12 AM – 9:15 AM:
These 3 minutes act as a buffer period before normal trading begins.
After 9:15 AM:
The regular trading session will begin at 9:15 AM.
Why did NSE introduce new Pre-Open auction rules?
According to the exchange, the implementation of the new pre-open auction session is aimed at improving the morning stock market and determining the accurate opening price when the market opens.
What’s the change for traders?
The major change in the NSE’s new pre-open session is that traders can place market orders from 9:00 AM to 9:05 AM only. After these 5 minutes, participants cannot place orders but can only limit, cancel, or modify orders.
