Brokers' body ANMI gives in-principle nod to extend trading hours for index futures

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The Board of the Association of National Exchange Members of India (ANMI) has given an in-principle approval to extend the trading hours for index futures, sources told CNBC-Awaaz on February 7.

The Brokers Industry Standards Forum (ISF), which comprises brokers' associations like ANMI, Commodity Participants Association of India (CPAI), and BSE Brokers Forum (BBF), will now send a letter to the market regulator Securities and Exchange Board of India (Sebi), the sources said.

The National Stock Exchange (NSE) had last year sent a proposal to Sebi, seeking an extension to the trading hours for index futures from 6pm to 9pm. But it received scepticism from small, traditional brokers, who would have to put extra resources for an evening desk if it was ratified.

The narrow window between 3:30pm and 6pm to settle trades and create fresh files for clients for the evening session was another issue flagged by the small brokers.

On January 29, at a Brokers ISF event, Sebi chairperson Madhabi Puri Buch had said that the broking community is a divided house when it comes to extended trading hours. She had said that the ISF would be reaching a conclusion on the same within a reasonable timeline.

Buch, however, wasn't sure about the timeline of the implementation of the extended trading hours. "Just one part of the ecosystem (exchanges) has come to us and that is not sufficient, so we have communicated that the feedback of the broking and investor communities is needed. Only after we analyse their feedback, we can take a decision,” she said.