Recently, OTCEI had announced to launch the OTCEI hi-trade market (OHM) session (enabling trading after usual market hours ie 4.30 pm to 7.30 pm) from January 19, 2001.

Speaking to The Financial Express, ISE managing director Joseph Massey said, "ISE has been contemplating for sometime to launch the evening trading session. The Business Development Committee (BDC) of ISE has also proposed that it should launch an evening trading window. We are likely to take a formal decision on it in our next board meeting to be held on January 20, 2001." The 350 brokers listed with ISE, some with common membership of the National Stock Exchange and the Bombay Stock Exchange would have the advantage of squaring up trade in the second half of the trading session, if there was some movement of price for any reason. These extended trading hours would give the brokers a good option to capitalise on their trade.

This would also reduce the existing kerb trading. Many market players have expressed concern that the advent of evening session might lead to a price distortion, as ISE being a smaller exchange may not have the sufficient quantity to match demand and supply in case of large demand for a particular stock.

However Mr Massey said that, "Even if there are large volumes traded in the second half, the presence of both large and smaller brokers with common membership of different stock exchanges would ensure the availability of quantity so that price discovery is efficient." Mr Massey also said that the extended trading hours would give a good option to brokers, who want to exit and who want to carry forward the risk. With regard to infrastructure, Mr Massey said that existing clearing house/settlement system is geared to handle the settlements. In order to augment the volumes of trade, the exchange has decided to waive the transaction charges till March 2001.

ISE along with its subsidiary ISE Securities and Services Ltd have a daily turnover of Rs 98 crore.

The opening up of an evening trading session would coincide with international markets, which open at different time zones. Moreover the domestic market can discount any major domestic and international news events which otherwise get discounted the next day.

Mr Massey also added that, "This segment would gather volumes gradually with the spread of Internet trading. This segment would be best suited to the retail investors, who are interested in trading after their office hours.

Internationally, there has been a demand to extend the trading hours mainly to cater to the needs of the retail investors.