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.
Also Read: World Beyond Stock Market: Unlisted Firms Account For More Than Two-Thirds Of Corporate Tax Payments In FY18
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.