The National Stock Exchange will change the way orders are placed in the equity market pre-open session from September 7, while keeping the overall 15-minute window unchanged. The pre-open session will continue to run from 9 am to 9:15 am. But the order-entry window between 9 am and 9:10 am will now be split into two parts. Traders will be able to place both market and limit orders only during the first five minutes, from 9 am to 9:05 am.

From 9:05 am to 9:10 am, the exchange will accept only limit orders. Any market order placed during this period will be rejected.

The change is important for traders who usually place orders closer to the end of the pre-open session. Under the new system, they will no longer be able to put in market orders after 9:05 am and will have to specify a price through a limit order.

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How the new pre-open session will work

The first phase will run from 9 am to 9:05 am. During this period, investors can enter, modify or cancel both market and limit orders. The second phase will run from 9:05 am to 9:10 am. Only limit orders will be allowed during this period. NSE has also provided for random closure during the final two minutes of this phase.

Order matching will take place between 9:10 am and 9:12 am. The next three minutes, from 9:12 am to 9:15 am, will be used as a transition period before the normal market session begins.
This means regular trading will still start at 9:15 am, as usual. The change is only in the order-entry rules during the pre-open auction.Read more : Stocks in news: Tata Motors, RVNL, Eicher Motors, Mazagon Dock and Lupin

What changes for traders

A market order is an order to buy or sell at the best available price. It is simple to place, but the final execution price can be uncertain, especially on days when the market opens with a large gap or when a stock is volatile.

A limit order is different. It allows a buyer to set the maximum price they are willing to pay, and a seller to set the minimum price they are willing to accept. This gives traders more control over the execution price.

Under the new framework, anyone placing an order between 9:05 am and 9:10 am will have to use a limit order. This may reduce the chance of sudden price distortions caused by late market orders in the pre-open window.

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Execution priority

NSE has also laid out how orders will be matched in the revised session. Market orders matched with other market orders will get the highest priority, based on time priority. After that, any remaining market orders will be matched with limit orders using price-time priority.

In the final stage, remaining limit orders will be matched against other limit orders, again using price-time priority.

The revised process brings the pre-open session closer to the auction structure used in the Closing Auction Session, or CAS. NSE said the move is aimed at aligning the market-opening mechanism with the closing auction framework.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

ET Intelligence Group: Prasol Chemicals, a specialty chemicals company, plans to raise ₹80 crore through a fresh issue towards repayment of debt. It will also raise ₹420 crore through an offer for sale. The promoter group’s stake will fall to 77.5% after the IPO from 89.2%. The company operates two manufacturing facilities in Maharashtra. While it manufactures over 150 specialty chemicals, over 40% revenue is contributed by a single product category. It exports to 69 countries and derives over a quarter of revenue from international markets. Top 10 customers accounted for 23.7% of revenue while top 10 suppliers account for nearly 69% of raw material purchases. The capacity utilisation at Mahad plant improved to 44.1% in FY26 from 12.7% in FY24 but remained relatively low. Given these factors, investors with high-risk appetite may apply.

Business
Incorporated in 1992, Prasol Chemicals is focused on manufacturing acetone-based and phosphorus-based derivatives, catering to diverse end-use industries such as performance chemicals (including lubricant additives and mining chemicals), pharmaceuticals, agrochemicals, paints, inks, construction & adhesives (PICA), and home and personal care. Its product portfolio includes 21 acetone-based chemicals, 53 phosphorous-based chemicals, and 76 other specialty chemicals. In FY26, acetone-based specialty chemicals contributed 42.8% of revenue, phosphorus-based specialty chemicals 38.3%, and other specialty chemicals 18.3%.

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Financials

Revenue from operations grew 18.6% annually to ₹1,232.6 crore and net profit surged 114.1% annually to ₹83.1 crore between FY24 and FY26. Operating profit before interest, tax, depreciation and amortization (EBITDA) jumped 51.7% to ₹139.3 crore during the same period. EBITDA margin improved to 11.3% in FY26 from 6.9% in FY24. Cash flow from operations dropped to ₹49.5 crore in FY26 from ₹115.6 crore in FY24, largely due to working-capital swings, rising receivables and inventory as the company scaled up operations and expanded sales. Working capital days increased to 49 days in FY26 from 35 days in FY24.

Valuation

Considering the post-IPO equity and net profit for FY26, the company demands a price-earnings (P/E) multiple of 48, compared with 27-197 for its peers such as Aarti Industries, Atul, Laxmi Organic Industries, Vinati Organics, Privi Specialty Chemicals, Yasho Industries and Excel Industries.