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Stage set for longer trading hours

Mumbai, Oct. 23: The Securities and Exchange Board of India today allowed stock exchanges to extend the duration of trading hours in both the cash and derivative segments from 9 am till 5 pm.

At present, the bourses operate from 9.55 am till 3.30 pm.

Stock exchanges — particularly the National Stock Exchange — have long been demanding the extension of trading hours.

The NSE maintains that it has been losing to the Singapore Stock Exchange (SGX) in the trading of Nifty futures, which is also listed on the SGX. The Singapore bourse opens early and closes trading after the market hours in India. Sebi, however, said the stock exchanges must put necessary risk management system and infrastructure in place to cope with the increase in trading hours.

In March, the market regulator had brought out a discussion paper seeking opinion from market circles on the issue.

Domestic stock exchanges are likely to take around two months or more to put the required infrastructure in place.

The development drew mixed responses from capital market circles. While longer hours will enable investors to take advantage of both global and local information in a single day, it will also entail additional cost to the brokerages.

Speaking to The Telegraph, Arun Kejriwal, director of KRIS, said, “Extension of the trading hours means that brokerages will have to deploy more personnel and their expenses will go up.”

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