MUMBAI, July 28: The National Stock Exchange (NSE) has decided to introduce a special closing session on Tuesdays in order to facilitate squaring off on the last day of the trading cycle.

This was decided at a meeting of the executive committee of the exchange on Monday. According to an NSE release, the closing session has been introduced as per the request of several members who have been voicing their hardship at squaring off positions on the last day.

The last day of the settlement normally witnesses huge trading volumes and a large number of order entries are there between 3 pm and 3.30 pm as members and investors try to square off positions. Therefore a closing session from 3.45 pm to 4 pm will be held every Tuesday starting today, July 29.

This session will operate like the pre-open phase conducted by the exchange currently. In the pre-opening period, trading members place orders on the buy as well as sell side and the potential open price is worked out and displayed to the market on a moment to moment basis. However, trades take place only at the end of the pre-open phase at a single price in such a way that the maximum number of shares can be traded for a security. Similarly, members will be able to place buy/sell orders during the closing session with all trades finally taking place only at the end of the closing session and at a single price. This closing price will be within the daily price band applicable for a security of 5/7/10 per cent as well as the settlement price limit of 15, 20, 25 per cent respectively.

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