SEBI’s New Mutual Fund NAV Valuation Rule from August 3, 2026: What Every Investor Should Know

From 3rd August: A Major Change in How Mutual Fund NAVs Are Valued

If you're a Mutual Fund investor, here's an important market update you should know.

Starting 3rd August 2026, SEBI is introducing the Closing Auction Session (CAS) for F&O-eligible stocks, changing the way their official closing prices are determined.

Since Mutual Funds use these official closing prices to value their portfolios, this change will influence how NAVs are valued.

🕒 What's Changing?

Till 2 August 2026	From 3 August 2026
F&O Cash Market Trading: Till 3:30 PM	Till 3:15 PM
Closing Price: VWAP (3:00 PM – 3:30 PM)	Closing Auction Session (3:15 PM – 3:35 PM)
Equity Derivatives Trading: Till 3:30 PM	Extended till 3:40 PM
Non-F&O Stocks	No Change

Till 2 August 2026

From 3 August 2026

F&O Cash Market Trading: Till 3:30 PM

Till 3:15 PM

Closing Price: VWAP (3:00 PM – 3:30 PM)

Closing Auction Session (3:15 PM – 3:35 PM)

Equity Derivatives Trading: Till 3:30 PM

Extended till 3:40 PM

Non-F&O Stocks

No Change

What is the Closing Auction Session (CAS)?

After regular trading ends at 3:15 PM, buy and sell orders for eligible stocks will be collected and matched through an auction.

The price at which the maximum quantity of shares can be traded (Equilibrium Price) will become the stock's Official Closing Price.

Why is SEBI introducing this change?

✔️ Improve price discovery
✔️ Reduce end-of-day price manipulation
✔️ Enhance transparency and market efficiency
✔️ Improve liquidity for institutional trades
✔️ Improve valuation accuracy for Mutual Funds, ETFs & Indices
✔️ Align Indian markets with global best practices

What does this mean for Mutual Fund investors?

✅ The Mutual Fund NAV formula is NOT changing.
✅ Your SIPs continue as usual.
✅ Your Fund Manager remains the same.
✅ Only the closing price used for valuing eligible stocks becomes more transparent and market-driven.

This is a significant step towards making India's capital markets more transparent, efficient, and globally aligned.

What are your thoughts on this market infrastructure upgrade? Share your views in the comments.

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