The broker community is yet to be brought on board by stock exchanges.
India's premier stock exchanges are mulling extension of daily trading hours beyond 3.30 pm. Trading hours could be extended till 5:30 pm or even 7:30 pm, a business channel reported on Thursday.
In 2009, capital market regulator SEBI had given in-principle approval for extending trading hours till 5:00 pm.
This was around the time when both NSE and BSE advanced their respective opening time from 9.55 am to 9 am.
However, back then, exchanges decided not to extend closing timing beyond 3.30 pm due to resistance from the brokers because of cost implications.
Even now, the broker community is yet to be brought on board by stock exchanges, especially if it wants to extend closing time to beyond 5 pm.
A broker said that if Indian markets were to trade between 8.00 am and 7.00 pm, it can attract more FPIs towards India.
But others said that while an extension in trading hours could be a good move, it may also add financial strain for the broker community.
“The extension till 5 pm is okay and it can be managed. Extending time by an extra 1-1/2 hours can be a good move but more than that it will be a strain on resources,” AK Prabhakar, Head, Research at IDBI Capital, told Moneycontrol.
Last month, the Metropolitan Stock Exchange of India (MSEI) said it will extend the closing time of trading hours on its equity capital market segment to 5 pm from the current 3.30 pm. It later deferred the extension.
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