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.
close because the cost of spending on additional headcount for a larger extension wouldnt be justified by any increases in revenue, at least initially, ET reported quoting sources.