The provisions of this circular shall be applicable from October 1 this year.
In a landmark decision, SEBI on Friday announced that stock exchanges will now be able to trade in Equity Derivatives Segment between 9 am and 11:55 pm.
This step was taken with a view to enable integration of trading of various segments of securities market at the level of exchanges.
Exchanges willing to extend trade timings shall seek prior approval from SEBI and submit framework for risk management, settlement process with SEBI.
The provisions of this circular shall be applicable from October 01 this year.
SEBI took this decision in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992.
Experts and stakeholders hailed SEBI's move, saying that investors will benefit from it. Here's what they had to say:
Ashishkumar Chauhan, MD & CEO, BSE
“We welcome SEBI’s move to permit Indian stock exchanges to set their trading hours in the equity derivative segment between 9 am and 11.55 pm. Globally, the derivative exchanges are already following the extended trading hours. The introduction of the extended hours is a positive development.”
Vineet Bhatnagar, MD, Philip Capital Market
"It is a good move by the capital market regulator. Longer hours will be useful for global traders and investors.”
PK Singhal, former whole time director of MCX
“SEBI permitting trading times in equity derivatives from 9 am to 11.55 is a welcome step and will help controlling the shifting of price discovery of Indian stock to Singapore or Dubai. This step will make equity derivatives trading at par with commodities.”
Sanjit Prasad, MD & CEO, Indian Commodity Exchange (ICEX)
“The move by SEBI to increase the market hours has been a long pending demand of the exchanges. It will help increase the depth of the Indian capital markets with all segments now offering an equal and better opportunity. It will also mitigate the risk of developments across international markets impacting the Indian market due to a time difference."
Shailendra Kumar, CIO, Narnolia Securities“Extending trading hour for the derivative segment will help Indian market capture European and US market movement through Nifty futures, it will also impact India VIX as delta hedger will price in lower overnight jumps.”