A major update is coming to India’s derivatives markets! From December 08, 2025, both NSE and BSE will introduce a Pre-Open Session for Index & Stock Futures. This move, guided by SEBI, aims to enhance trading convenience and ensure smoother, more efficient markets.
What is a Pre-Open Session?
A Pre-Open Session is a short trading window before the regular market opens. It allows traders to place, modify, or cancel orders in advance. Based on these orders, the exchange determines the equilibrium price, ensuring fair and transparent price discovery at market open.
Benefits for Traders
- Better Price Discovery – Fairer opening prices with less volatility.
- Improved Liquidity – More orders matched at open, reducing gaps.
- Risk Management – Helps absorb overnight news and global market movements.
Effective from
Go-Live date: December 08, 2025
Timings:
| Order entry/modification/cancellation | 9:00 AM to 9:08 AM |
| Order matching and trade confirmation | 9:08 AM to 9:12 AM |
| Buffer period before continuous trading | 9:12 AM to 9:15 AM |
| Normal Trading Hours |
9:15 AM to 3:30 PM |
Contract Eligibility
The pre-open session is applicable to the following instruments:
- Current-Month Futures: Both stock and index futures.
- Next-Month Futures: Only eligible during the last 5 trading days prior to the current-month expiry.
Note on After Market Orders (AMO): AMOs placed for eligible securities (either the previous day or pre-market) will execute during this session. Market orders placed as AMOs will have price protection applied based on the previous day’s closing price.
Excluded Contracts
The following instruments will not participate in the pre-open session:
- Options
- Calendar Spreads
- Far-month futures
- Futures of securities on the ex-date of a corporate action
Operational Rules
- Mechanism: Price discovery is conducted via a Call Auction Mechanism at exchange.
- Transparency: The Indicative Equilibrium Price remains visible throughout the session.
- Self-Trade Prevention: STPC (Self-Trade Prevention Check) remains applicable.
Order Management
| Feature | Details |
| Allowed Orders | Limit Orders and Market Orders (with price protection). |
| Restricted Orders | Stop-Loss (SL) and Immediate or Cancel (IOC) orders are not allowed. |
| Unmatched Orders |
|
Risk & Margin
- Validation: Margin validation is active; orders with insufficient funds will be rejected.
- Netting: There is no netting of orders; margin is charged separately for each contract.
What Should You Do as a Paytm Money User?
- Get familiar with how the Pre-Open Session works.
- Plan your derivative strategies in advance.
- Use this window to manage risk and capture better entry prices.
Conclusion
This is a positive step for all traders in the Equity Derivatives Segment. Whether you trade index futures or stock futures, the Pre-Open Session will give you more control and confidence at the start of each trading day.
Stay tuned on the Paytm Money app for more updates and educational guides on using Pre-Open Sessions effectively.
Source: ET, NSE, BSE
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for investor awareness, entertainment and information purpose only and in no way to be considered as an advice or recommendation. Paytm Money Ltd SEBI Reg No. Broking – INZ000240532, Depository Participant – IN – DP – 416 – 2019, Depository Participant Number: CDSL – 12088800, NSE (90165), BSE (6707), SEBI reg No. Research Analyst – INH000020086. Regd Office: 136, 1st Floor, Devika Tower, Nehru Place, Delhi – 110019. For complete details, please visit: https://www.paytmmoney.com
