Bourses allowed to extend trading hours

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fe Bureaus: Mumbai, Oct 24 2009, 03:10 IST

Sebi on Friday permitted stock exchanges to extend their trading hours in the equity and derivative segment to between 9 am and 5 pm. The existing trading hours are 9.55 am to 3.30 pm. Market participants largely welcomed the move, which is being seen as conducive to catching more overseas trades, particularly from western investors. “Derivatives of Indian equity products are listed and traded outside India. The extension of trading hours will help reduce the time gap and help a fair price discovery between time zones,” said Religare Capital Markets president-equity Amitabh Chakraborty.

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

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Reader's Comments (2)| Post a Comment

Extension of timing on bourses

Pramod | 25-Oct-2009Reply | Forward

It would be great idea if instead of extending the time to 5.00 PM, Stock exchanges run as usual and shut their shop at 3.30 and again reopens for the day at around 7.00 PM and this session could last for 2-3 hours. This way the advantage of both European and American markets can be taken by Indian investors. Also it would not put much strain on the brokers as they will get a breather and then they can start afresh. Also this may eliminate the need to open the markets at 9.00 AM. Let the exchanges invite comments from investors and all related parties.Pramod

Increase in trading hours

DHIREN | 24-Oct-2009Reply | Forward

In my opinion we should have a 24x7 trading facility. That way we will have tremendous capital flowing into our country. And with electronic trsding this is easily possible. This way the growth of our companies will be sustained