Mumbai, May 4 (IANS) The Securities and Exchange Board of India (SEBI) on Friday said that it has permitted stock exchanges to extend trading hours for the equity derivatives segment from October 1, 2018.
According to a SEBI cicular issued on Friday, stock exchanges have been allowed to set their trading hours between 9 a.m. and 11.55 p.m., similar to the trading hours for the "Commodity Derivatives Segment".
Currently, trading on the equity derivatives segment takes place from from 9.15 a.m. till 3.30 p.m.
Presently, the trading hours of "Commodity Derivatives Segment" has been fixed between 10 a.m. and 11.55 p.m. provided that "stock exchange and its clearing corporation(s) have in place risk management system and infrastructure commensurate to the trading hours".
The development comes after SEBI in December 2017 allowed stock exchanges to trade commodity derivatives along with other segments of securities market effective from October 1, 2018.
Besides, the cicular said that those stock exchanges which "are desirous of extending the trade timings beyond the extant trading hours, prior approval from SEBI shall be sought along with a detailed proposal including the framework for risk management, settlement process, monitoring of positions, availability of manpower, system capability, surveillance systems, etc".
On their part exchanges welcomed the regulator's move.
Commenting on the circular, BSE's MD and CEO Ashishkumar Chauhan said: "We welcome SEBI's move to permit Indian stock exchanges to set their trading hours in the equity derivative segment between 9 a.m. and 11.55 p.m.."
"Globally, the derivative exchanges are already following the extended trading hours. The introduction of the extended hours is a positive development and will bring Indian market in line with International market and Indian Commodity derivative markets."
Indian Commodity Exchange's (ICEX) MD & CEO Sanjit Prasad said: "The move by SEBI to increase the market hours has been a long pending demand of the Exchanges."
"It will help increase the depth of the Indian capital markets with all segments now offering an equal and better opportunity. It will also mitigate the risk of developments across international markets impacting the Indian market due to a time difference."
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