NSE, BSE likely to extend trade timings

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Posted: Monday, Nov 02, 2009 at 1523 hrs IST
Updated: Monday, Nov 02, 2009 at 1523 hrs IST

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New Delhi: The country's two prime bourses, the National Stock Exchange and the Bombay Stock Exchange, are likely to extend the trading time by two and half hours from next month and a formal notification to this effect is expected shortly.

"Both the exchanges (BSE and NSE) have discussed the issue (extension of trade timings) and a formal notification is expected shortly," a senior exchange official said.

Last month, market regulator Securities and Exchange Board of India (SEBI) approved extension of the trading timings by up to two-and-a-half hours from 9 am to 5 pm. The current market hours stand from 9.55 am to 3.30 pm.

"Both the exchanges have already deliberated on the issue and they are likely to implement it after the expiry of the stock futures contract on November 26 or at the beginning of December contract," said an official privy to the development.

The new trading hours would now help integrate the Indian bourses with Singapore and other Asian markets in the morning hours and the European market in the evening hours.

In Singapore, which is around two and a half hours ahead of India, trading sessions are held between 9 am and 12.30 pm and 2 pm and 5 pm (local time).

"Right now we are losing out to SGX Nifty (Indian Nifty traded in Singapore bourse) in terms of volume. By aligning market hours with global bourses, we can maximise amount of capital allocation to the Indian stocks," ICICI Securities Executive Director Anup Bagchi said.

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» Contemporary Use of Time

Posted by Mriganka Sekhar Gayen on 2009-11-28 21:04:50.810552+05:30
NSE & BSE IS NOT ENOUGH IMPROVED MARKET AS COMPARE TO OTHER TOP LISTED STOCK EXCHANGES. EVEN THIS DAYS FOR 5:30 HOURS TRADING HOURS THERE ARE SO MANY IDLE TIMES(NON TRADING TIME PHASE), SO IF THEY WANT TO EAT WESTERN AND ASIAN TRADERS, I THINK THEY SHOULD BREAK IT FOR TWO PART- 9:00am TO 3:00pm AND 11:00am TO 5:00pm FOR 3 OR 2 DAYS (i.e.5 trading days).

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» Extending trade timings.

Posted by Murgie Krishnan on 2009-11-02 20:52:25.714698+05:30
Extending trading hours may increase trading volume (till countervailing steps are taken by competing exchanges) but in any case is only mildly related -- if at all -- to market quality for final retail investors. That depends more on enforcing disclosure and corporate governance rules that already exist, and constantly improving them.Given that information takes time to absorb, and that much trading is driven only by momentum and rumour rather than information and analysis, market quality could be enhanced by keeping the market SHUT for long intervals, and BATCHING trades, say, every hour. At a minimum it would be worthwhile to see if market quality improves. The informativeness of prices could increase as their volatility diminishes. Moving to batching of orders every hour (picking a price that will maximize volume as in fix-price markets) in at least a few stocks is an easy experiment to conduct. It is also not necessarily against the interests of middlemen as a whole.

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NSE, BSE likely to extend trade timings

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