Synopsis: SEBI rejected NSE's proposal to extend derivative trading hours due to broker community disagreement. Despite ANMI's initial approval, SEBI's decision followed the absence of broker feedback. NSE's phased extension plans, including evening sessions and longer trading hours, are currently on hold.
Media reports indicate that the Securities and Exchange Board of India (SEBI) has dismissed the National Stock Exchange's (NSE) proposal to extend trading hours in the derivatives segment.
NSE's Managing Director and CEO, Ashishkumar Chauhan, mentioned during an analyst call that SEBI rejected the proposal due to a lack of consensus among the broker community. Chauhan noted that stock brokers did not provide feedback to SEBI regarding the extension of trading hours, resulting in the shelving of the extended timeframe for trading.
Earlier, the Association of National Exchange Members of India (ANMI) had given its in-principle approval for extending trading hours for index futures. NSE had proposed the phased extension of trading hours for index F&O trading last year, intending to extend the trading hours for equity derivatives in phases.
The first phase aimed to introduce evening sessions between 6 p.m. IST and 9 p.m. IST, alongside the regular trading hours of 9:15 a.m. to 3:30 p.m. The second phase proposed extending index derivatives trading until 11:30 PM, followed by extending cash market trading hours until 5 PM in the third phase.
Related Questions
1. Why did SEBI reject NSE's proposal to extend trading hours?
SEBI rejected NSE's proposal due to a lack of consensus among brokers, halting plans for extended trading hours.
2. What were NSE's phased plans for extending trading hours?
NSE's phased plans included evening sessions and extensions for index derivatives and cash markets, now postponed.
3. Why did SEBI's decision to reject the proposal come about?
SEBI's decision followed a lack of broker feedback, despite initial support from ANMI, leading to the proposal's suspension.
4. What factors influenced SEBI's decision regarding the trading hour extensions?
SEBI's decision was influenced by the lack of broker consensus and feedback, causing a suspension of the proposed trading hour extensions.
