Groww, Zerodha Roll Out Closing Auction Order Queuing

Major Indian stockbrokers, including Groww and Zerodha, are set to introduce a new system that enables investors to queue orders during the Closing Auction Session (CAS) transition window. This development comes after Angel One has already introduced the facility, giving it an early advantage in the market.

The move follows a directive from the Securities and Exchange Board of India (SEBI) that requires brokers to modify their trading infrastructure. The new system allows customers to place orders between 3:15 pm and 3:20 pm, a five-minute period during which stock exchanges currently do not accept orders.

SEBI's decision to introduce the new CAS mechanism is aimed at making the closing auction process smoother, improving liquidity, and enhancing price discovery near the end of the trading session. The CAS was introduced on August 3 for stocks included in the derivatives segment.

Under the earlier system, continuous cash-market trading ended at 3:15 pm, followed by a five-minute transition period before the closing auction's order-entry window opened at 3:20 pm. Orders sent directly to exchanges during this interval were rejected.

Angel One has developed a system that temporarily stores orders submitted during the transition period and automatically forwards them once the auction window opens. The broker's CTO, Ajit Narayanan, stated that the primary concern was ensuring that the regulatory change was implemented accurately, as errors could result in rejected trades or transactions being executed at incorrect prices.

Angel One's technology team adapted an existing order-queuing system to implement the new CAS mechanism. The system had previously been used to protect customers from disruptions involving its order-management-system vendor and for scheduled after-market orders.

The broker has also introduced an Indicative Close Price, replacing the frozen last-traded price during the relevant period. Customers can view the total trading volume and the indicative quantity expected to be matched during the auction.

SEBI had begun consultations on the closing auction mechanism last year before issuing a formal circular in January 2026. The framework is designed to bring India's market structure closer to international practices.

The introduction of the new CAS mechanism is expected to improve the overall trading experience for investors. With major brokers like Groww and Zerodha set to roll out the new system, investors can expect a smoother and more efficient trading process.

The development is a significant step towards aligning India's market structure with international standards. As the Indian stock market continues to evolve, the introduction of new mechanisms like the CAS is expected to enhance liquidity and price discovery, ultimately benefiting investors.

In conclusion, the introduction of the new CAS mechanism is a positive development for the Indian stock market. With major brokers adapting to the new system, investors can expect a more efficient and smoother trading experience. The move is expected to improve liquidity and price discovery, ultimately contributing to the growth and development of the Indian stock market.