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Sebi reviews NSE proposal to extend equity derivatives trading hours

EditorAmbhini Aishwarya
Published 11/27/2023, 06:10 AM
© Reuters.

Sebi, India's securities market regulator, is currently evaluating a proposal from the National Stock Exchange (NSE) to extend the trading hours for the equity derivatives segment. The NSE's initiative aims to better align with global markets and leverage technological advancements to manage domestic and international events that can impact trading.

The Chairperson of Sebi, Madhabi Puri Buch, underscored the importance of considering a wide range of perspectives from the capital market ecosystem, including those of brokers and investors. The regulator is in the process of gathering extensive feedback from various market infrastructure institutions (MIIs) and other stakeholders before arriving at a decision.

The NSE's push for longer trading hours stems from a desire to capitalize on the technological capabilities that have been developed since India became one of the early adopters of automated trading exchanges. Despite this, NSE's CEO, Ashishkumar Chauhan, has acknowledged that Indian trading schedules are relatively shorter compared to the extended hours offered by global peers, some of which operate for over 20 hours a day.

As Sebi considers this proposal, it will take into account not only the potential benefits but also the associated costs. The regulator's comprehensive review process aims to ensure that any changes to the trading hours will benefit the entire capital market community.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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