SEBI wants exchanges to consider brokers’ views before extending trading hours

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Amid protests from brokers on extending trading hours till midnight, capital markets regulator SEBI has asked BSE and NSE to have another round of meetings with them, Moneycontrol has learned from a source. The regulator feels a consensus between brokers and the bourses is critical to implementing extended trading hours.

"SEBI wants to take a decision only after brokers and the bourses are on the same page. It may also review whether the extension will hold for all segments of stocks or be restricted to just indices,” a source familiar with the development told Moneycontrol.

NSE and BSE had submitted a plan to extended trading hours till midnight from October 1. On May 4, SEBI had agreed to increase timings for equity derivatives trading to 11.55 pm.

A senior official of an exchange said: "SEBI needs more consultation with brokers before giving final nod for extending the timings."

Alok Churiwala, Managing Director of broking firm Churiwala Securities, told Moneycontrol: "More than incremental revenues, an extension of trading hours will increase costs. So SEBI’s call on consultation is good.”

"Extensive stakeholder consultation is the norm followed by all responsible organisations. We are glad that this is now being done for a decision which has serious and far-reaching implications," Uttam Bagri, Chairman, Bombay Stock Exchange Brokers Forum, said.

Meanwhile, traders' body Association of National Exchanges Members of India (ANMI) has given a detailed presentation on derivatives to SEBI on the subject. “It primarily focuses on not extending the trading timing of single future till midnight. Nowhere in the world, single-stock derivatives trade in absence of cash market,” said an ANMI member.

“Actually, we are required to trade on the basis of world market volatility which requires indices to remain open for longer trading hours,” the member said.