SEBI to extend commodity trading hours soon

The Securities and Exchange Board of India (SEBI) may allow the commodity market to open an hour early at 9 am, instead of at 10 am now. It is also considering extending the closing time of the agri commodity market by 4 hours to 9 pm. An announcement to the effect is expected soon.

Agri commodities such as soybean, palm oil, and cotton overseas for which the price discovery is dependent on the international markets will continue to trade until 9 pm while non-agri commodities will continue trade till 11.55 pm.

The National Commodity and  Derivative Exchange (NCDEX) had approached the regulator to consider extending the trade timings and to keep trading open on Saturdays as well. A source close to the development told Moneycontrol, "As of now, the regulator will only allow an increase in the trading hours, but may not take a decision on Saturday trading.”

An exchange official told Moneycontrol "Increasing time will boost the volume in the agri segment."

The stock exchanges have also been proposing an extension in trading hours but have been unable to reach a consensus with brokers.