Operational Guideline for Market Orders emanating from Algo on Introduction of Closing Auction Session in the Equity Segment

Official title

Operational Guideline for Market Orders emanating from Algo on Introduction of Closing Auction Session (CAS) in the Equity Segment.

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What changed

BSE has issued operational guidelines regarding the treatment of algorithmic market orders during the newly introduced Closing Auction Session (CAS) in the Equity Cash Segment. While penalties for algorithmic market orders remain applicable during the normal market session as per existing Exchange notice 20251010-20, the Exchange has clarified that no such penalties will be levied on algorithmic market orders placed specifically during the Closing Auction Session. This update follows previous regulatory directives from SEBI and the Exchange regarding the implementation of the CAS.

Who is affected
  • Trading Members
Key dates
  • Notice Date — 30 Jul 2026
Exceptions
  • Algorithmic market orders placed during the Closing Auction Session are exempt from penalties.

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Source details

Source
BSE Ltd (Bombay Stock Exchange)
Type
notice
Published by source
30 Jul 2026
Document number
20260731-39
Issuing division
Surveillance
Coverage area
securities

Document text

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NOTICE

Notice No.20260731-39
Notice Date31 Jul 2026
CategoryTrading
SegmentEquity
DepartmentDOSS
SubjectOperational Guideline for Market Orders emanating from Algo on Introduction of Closing Auction Session (CAS) in the Equity Segment.
AttachmentsNo Attachment

This is further to the SEBI circular no. SEBI/HO/47/11/11(3)2025-MRD-POD2/I/2765/2026 dated January 16, 2026, and Exchange notice no 20260119-17 dated January 19, 2026, regarding introduction of Closing Auction Session (CAS) in the Equity Cash Segment.

Currently, penalties for algorithmic market orders during the normal market session are levied in accordance with Exchange Notice No. 20251010-20 dated October 10, 2025. However, Trading Members are hereby informed that no penalty shall be levied on algorithmic market orders during the Closing Auction Session (CAS).

In case of any clarifications, members may write to us at bse.surv@bseindia.com

For & On behalf of BSE Ltd.

Sanjay Jain Deputy Vice President Surveillance

Arpita Joshi Manager Surveillance

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