How Will NSE’s New F&O Pre-Open Session from December 8, 2025, Impact Traders?
About the Circular
The National Stock Exchange of India (NSE) has officially announced the introduction of a Pre-Open Session in the Equity Derivatives (F&O) Segment, as per Circular Ref. No. 184/2025 (dated November 3, 2025). The pre-open facility will come into effect from December 8, 2025, marking a major operational change in India’s derivatives market.
The move aligns with SEBI’s directive (SEBI/HO/MRD/TPD-1/P/CIR/2025/79) aimed at improving price discovery, liquidity, and transparency during the initial moments of trading.
This pre-open phase will help reduce price volatility at the market open, as orders will be matched in a controlled call auction mechanism before regular trading begins.
Pre-Open Session Timings and Structure
The pre-open session will last for 15 minutes — from 9:00 am to 9:15 am — divided into three distinct phases:
| Session | Time | Description |
|---|---|---|
| Order Entry Period | 9:00 am – 9:08 am (*) | Traders can enter, modify, or cancel orders. The system closes randomly between the 7th and 8th minute to avoid last-second manipulations. |
| Order Matching & Confirmation | 9:08 am – 9:12 am | Orders are matched and opening prices determined. Trade confirmations are processed in this window. |
| Buffer Period | 9:12 am – 9:15 am | Transition phase before continuous trading begins at 9:15 am. |
The equity and derivatives segments will have independent random closures for their pre-open sessions to prevent cross-market manipulation.
This new mechanism mirrors global best practices where derivative instruments undergo an auction-based discovery before open — helping traders gauge fair market levels before the day’s volatility begins.
What It Means for Traders
- 📊 Better Opening Price Discovery: Orders placed in pre-open define the first traded price in a transparent, data-driven way.
- 💡 Reduced Volatility: Sudden spikes at 9:15 am will now smoothen out as demand and supply converge beforehand.
- ⚙️ Fair Order Execution: Institutional and retail traders get equal opportunity during the call auction phase.
- ⏱️ Operational Change: Traders must now adjust systems and algos to include the pre-open timeline.
For intraday and option traders, this means early market cues will emerge before regular trading begins. Adapting to this session will be key for accurate signal generation and strategy execution.
Those trading actively in derivatives can fine-tune their entry points using structured guidance from Nifty Option Tips and Bank Nifty Tip to align strategies with this new pre-open discovery phase.
Circular Reference Details
| Parameter | Details |
|---|---|
| Department | Futures & Options |
| Circular Ref. No. | 184/2025 |
| Download Ref. No. | NSE/FAOP/71092 |
| Date of Issue | November 3, 2025 |
| Effective Date | December 8, 2025 |
Investor Takeaway
The introduction of a Pre-Open Session in the F&O segment marks a significant step toward a more efficient and transparent derivatives market in India. It will aid in fairer price discovery, improved risk management, and lower volatility at the opening bell.
According to Gulshan Khera, CFP®, and SEBI Registered Investment Adviser at Indian-Share-Tips.com, the 9:00–9:15 am window will become a crucial period for institutional and algorithmic traders to set tone for the day. Explore in-depth derivative insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
