NSE weighs extending trade timings gradually
MUMBAI : National Stock Exchange (NSE) of India Ltd is considering gradually extending trade timings, currently set at 6 hours and 15 minutes of the regular market, in consultation with its broker members, a top official of India’s largest stock exchange said. The proposal must be approved by the capital markets regulator and could be extended to derivatives contracts, said Ashishkumar Chauhan, managing director and chief executive, NSE.
“We have already started the consultation with broker members on how to increase trade timings at least in a more convenient way for office-goers in the evening," Chauhan said after reporting the first quarter earnings on Friday. “They (brokers) are considering that, so hopefully, when there is a conclusion, we will apply to Sebi (Securities and Exchange of Board of India) for their approval.
And if their approval comes, we will be able to slowly expand the timing for some of the derivatives contracts at most." Currently, the regular trade timing session on NSE and BSE runs from 9:15am through 3:30pm for stocks, following a pre-open session from 9am to 9:15am. Currency derivatives trading on the exchanges runs from 9am to 5pm, while commodity derivatives trading happens from 9am to 11:30pm and to 11:55pm (winters) as many commodities are mirror contracts of those traded on the US CME bourse.
However, any increase in trade timings would be an additional cost burden on small brokers, warned securities lawyer Chirag Shah. He explained that in the event of an extension of trade timings, there would be no single stock futures but index derivatives as offered by the multi-asset class US exchange CME Group, which runs for almost 24 hours covering all time zones.
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