ANMI Broker Poll: 62% don't want longer trading hours

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The Securities and Exchange Board of India (SEBI) has formally allowed stock exchanges in India to extend market trading hours by two hours every day. While the exchanges are yet to take a decision on this, the issue is being debated about almost every day. And now, the Association of National Exchange Members of India (ANMI) has conducted an online survey to gauge the opinion of the member brokers and investors at large. Over 800 brokers were surveyed of which 50% did not respond.

Here is a quick summary of the results.

• 62% of those polled did not want trading hours to be extended.
• Of the members who were in favour of extended market hours, 63% wanted the market to start prior to 9.55 am (but close by 3.30 pm).
• Of the members who were in favour of extended market hours, 83% wanted markets to close after 3.30 pm (but  continue to open at 9.55 am).
• 47% of members preferred to have pre opening/post closing session with normal market hours.
• 59% of the members preferred to have the same number of trading holidays.
• 50% of the members wanted to have the market shut for a continuous period of one week during the year.

Is the system ready for extended market hours?

The real time gross settlement (RTGS) system, a funds transfer mechanism where transfer of money takes place from one bank to another on a 'real time' and on 'gross' basis, is not in place yet, which will cause disruption in the functioning of the exchanges. Moreover, EMC Palaniappan President of ANMI says, brokers' offices may also not be able to handle the extension of trading hours as of now. "Once infrastructure is in place then maybe we can again review this option. But as it stands today people are not in favour of extension."

The findings of the survey have been submitted to the exchanges, said Palaniappan, adding that it in now left to the National Stock Exchange (NSE) to take a call. "We will have discussions with the NSE later this week."

For complete interview with EMC Palaniappan on CNBC-TV18, watch video.