India's National Stock Exchange (NSE) has submitted a proposal to the Securities and Exchange Board of India (SEBI) seeking permission to hold evening trading sessions in the equity derivatives segment. Sriram Krishnan, head of business development at NSE, explained the plan during an interview with BQ Prime's Sajeet Manghat.
As part of the proposed changes, the NSE is looking to extend trading hours for index futures and options from 6 p.m. to 9 p.m IST. Krishnan clarified that trades conducted during these extended hours would be considered as part of the next day's volumes to avoid any complications. He also stated that "whatever expiry is applicable to the next day's trade...applies to the trades conducted between 6 and 9 p.m. on the previous day." According to Krishnan, it will take "at least a couple of months" for these extended hours for derivative trading to become operational.
The move follows a phased plan put forward by the NSE, which suggests a gradual approach to extending trading hours. Initially, the exchange aims to extend trading hours for Index F&O until 9 p.m., followed by a second phase where Index F&O trading would be extended until 11:30 p.m. The final phase of the plan proposes extending cash market trading hours until 5 p.m.
Supporters of this extension argue that it aligns more closely with global markets and accommodates market-moving news often emerging in evening hours. This proposal comes in response to SEBI's reported consideration of extending trading hours for the cash market after receiving a proposal from NSE for longer trading hours in the futures and options (F&O) segment.
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