Bourses allowed to extend trading hours
Another positive fallout is the likely increase in volumes. When the SGX Nifty started trading on the Singapore Stock Exchange that goes live two-and-a-half hours earlier than Indian markets, a substantial portion of the volume shifted out of the NSE. “This will help bring volumes back to the Indian market,” Chakraborty added.
While BSE has welcomed Sebi’s decision, an NSE spokesperson said the exchange would soon be implementing the extended trading hours, which aligns with the currency trading hours of between 9 am and 5 pm.“One positive is that investors will be able to react to news breaking earlier and later in the day, and allow higher participation from global players as it will suit their timings,” said Edelweiss president Naresh Kothari.
However, Kothari pointed out some downsides, too. “The whole settlement and banking systems will come under pressure. Working hours in the back-office operations of brokerages will have to be extended, which will increase the cost of