Increase Trading Time in India? NSE's Proposal on Hold

In a recent analyst call, National Stock Exchange (NSE) Managing Director & CEO Ashishkumar Chauhan revealed that the Securities and Exchange Board of India (SEBI) has rejected their proposal to extend trading hours.

Lack of Consensus Among Brokers Halts Extension

The proposal's rejection stems from a lack of agreement within the broker community. "The extended timeframe for trading is shelved for now," said Chauhan, highlighting SEBI's concerns.

Previously Supported by Industry Body

Earlier in February, the Association of National Exchanges Members of India (ANMI) had initially approved the concept, with reservations about operational challenges. However, SEBI remained cautious due to the divided opinions among brokers and emphasized the need for downtime between trading sessions.

Phased Expansion Proposed by NSE

Last year, the NSE proposed a gradual extension of trading hours for index derivative products. Their plan involved:

• Phase 1: Introduce an evening session from 6 p.m. to 9 p.m. IST, alongside the existing hours of 9:15 a.m. to 3:30 p.m. IST.
• Phase 2: Extend index derivatives trading until 11:30 p.m. IST.
• Phase 3: Ultimately, expand cash market trading hours to 5 p.m. IST.
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Future of Extended Hours Uncertain

The current scenario leaves the future of extended trading hours in India unclear. SEBI's decision highlights the need for a unified stance among market participants before any potential implementation.