- The National Stock Exchange plans to extend current exisitng Future and Options trading hours and seeks approval from Sebi.
- NSE aims to introduce a new trading session from 6 pm to 9 pm, reducing overnight risk.
- Sriram Krishnan, Chief Business Development Officer of NSE(National Stock Exchange), shares this plan.
- Transactions during the evening session will carry over to the next business day.
- There’s potential for further extension till 11.55 pm, similar to commodity derivatives.
- Initially, only index derivatives will be available, followed by single stock options.
- The proposal has been submitted to Sebi for approval, with optimism for quick clearance.
- NSE’s commitment to making this shift has been demonstrated through extensive consultations with various stakeholders.
- Preparations will involve stakeholders re-engineering processes and streamlining timelines.
- The trading community’s input and extensive consultations drove the proposal.
- Market experts anticipate increased capital formation and participation due to extended hours.
- Indian markets currently close at 3.30 pm, limiting access to global events and information.
- Longer trading hours would facilitate onshore price discovery and enable timely reactions.
- In 2018, Sebi allowed flexible trading hours for equity derivatives, similar to commodities.
- NSE’s (National Stock Exchange) ambitious plan to extend trading hours reflects the changing dynamics of the financial industry and the growing need for real-time responsiveness in a globalized world.
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