Sebi chief cautions against extending derivative trade hours

Mumbai, Jan 30, 2024

Sebi chief Madhabi Puri Buch has cautioned brokers against extending trading hours for the derivatives segment without considering the limit to which the technology is able to withstand the load of huge transaction volumes.

The Sebi chief was responding to queries over NSE's September 2023 proposal to extend trading hours in the equity derivatives segment by a few hours in the evening to align with world markets.

"This (extended trading hours) is an important issue from a resilience of technology point of view, which constantly needs maintenance upgrade and functionality addition. That is certainly an additional question," said Puri Buch. She said that while regular trading in the commodity derivatives segment is open till late in the evening, the volumes there are much lower than those yn the equity derivatives segment.

The stock broking community is divided over the issue of extending trading hours beyond the current window of 9.15am to 3.30pm on weekdays. Brokers are currently discussing the issue, Sebi chief said.

"It's a divided house and we have not yet reached the stage of getting views from investors," said Puri Buch. If the brokers agree to extend trading hours for this segment, the regulator will then consult with market infrastructure institutions (like all stock exchanges, clearing corporations, depositories) and then the investors to arrive at a final decision on the issue. Sebi chief was speaking at the presentation by the Brokers' Industry Standards Forum.

[The Times of India]