INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Market regulator Sebi on Tuesday deferred the October 1 deadline for the extension of trading hours
Sources told ET Now that the stock exchanges were yet to arrive at a consensus with brokers
Talks were underway, sources added.
At present, stock market in India remain open during 9.15 am to 3.30 pm.
However, there was a proposal
that trade hours could be extended to align domestic market better with global markets.
A few brokerages had felt that brokerages in India
were already keeping their offices open as the commodity trading are opened till 11.55 pm
Hence, the extension of trading hours for another segment in the market would allow them to right size their operations for all segments
However, a consensus was yet to be reached
Sources told ET Now that no consensus was reached on products to be allowed during the extended trading hours
Stock exchanges will now revert to Sebi after any consensus is reached with brokers
Sebi had in May this year allowed stock exchanges to set their trading hours in the equity derivative segment between 9 am and 11.55
pm.
Globally, the derivative exchanges are already following the extended trading hours
It was believed that the introduction of the extended hours will bring the domestic market in line with commodity derivative markets.
While
the regulator wants to start the new trading hours on October 1, brokers told it that they need at least six to eight weeks to complete
testing, the people said, adding that after-hours trading exposes systems to more risk as volume and liquidity may be thin in the first few
months, ET reported last week.
Brokers want derivatives trading to run only 90 minutes longer than the current 3:30 p.m
least initially, ET reported quoting sources.
