The Securities and Exchange Board of India (Sebi) on Friday permitted the stock exchanges to extend their trading hours but within the time frame of 9 am and 5 pm in the cash and derivatives segment.
In a circular to the stock exchanges, clearing houses and clearing corporations Sebi executive director, Mr J.N.Gupta, said that the other condition was that the exchanges have in place risk management system and infrastructure commensurate to the trading hours.
There had been a long standing demand for extension of trading hours at least for the index futures as there was a huge migration of business to the Singapore Stock Exchange and the SGX Nifty invariably sets the trends for the Indian markets as the Singapore market open two and a half hours earlier than the Indian stock markets.
Market participants and the stock exchanges feel that extending trading time would put a strain on their infrastructure and also increase costs.
While the BSE was non-committal about when it would extend its trading hours, the NSE MD and CEO, Mr Ravi Narain, said that it could be done “soon.”
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