Give It Time: SEBI’s Decision To Extend Trading Hours Beyond 3.30 PM Unlikely To Be Implemented In Near Future

SEBI’s decision to extend the trading hours in the stock and futures markets is not likely to be implemented in the near future due to differences between various stakeholders, reports Mint. Securities and Exchange Board of India (SEBI) is an apex statutory body that regulates the securities market in India.

“We had enabled the exchanges to trade for extended hours and they were to submit proposals, including risk management framework and member consensus. There are some issues there,” said Sebi chairman Ajay Tyagi.

On 4 May, the regulator had allowed exchanges to continue trading beyond the current deadline of 3.30 PM and trading in equity derivates was to be allowed to continue till 11.55 PM. This rule was to come into force from 1 October.

However, many brokers are not in favour of the time extension. Some feel that the additional volumes that will come in after 3.30 PM will not be enough to justify the costs involved in keeping the market open.

Solvent Extractors Association of India (SEA) had earlier written to SEBI noting that the current trading schedule is appropriate and that it was not in favour of extending the same.

“Major auctions (in the agriculture business) take place in the morning between 10 am to 12 noon and no trading activity takes place thereafter. Hence, if futures market is allowed beyond 5 PM, it can seriously distort prices,” said BV Mehta, executive director, SEA.

Also, many traders are protesting against the increase in working hours of commodity exchanges like Multi Commodity Exchange (MCX) and NCDEX. These exchanges had announced that they would open for trading from 9 AM and go on till 6 PM. Earlier, it was 10 AM to 5 PM.

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