Zerodha's Nithin Kamath on extending trading hours: 'Unsure how it'll affect mental health'

Zerodha founder and CEO Nithin Kamath

While stock exchanges have been considering extending stock futures and options trading hours, the founder and CEO of the country's largest stock broking site Zerodha has spoken out about being conflicted about the extra trading hours voicing concern over the mental health of active traders.

Taking to Twitter on Monday, Nithin Kamath wrote, "Extended trading hours for F&O (stock futures and options) will maybe signal the maturity of our markets. They also level the playing field for domestic traders against international traders and are also good for capital markets businesses in terms of revenues, but I'm conflicted."

Extended trading hours for F&O will maybe signal the maturity of our markets. They also level the playing field for domestic traders against international traders and are also good for capital markets businesses in terms of revenues, but I'm conflicted. 1/3

— Nithin Kamath (@Nithin0dha) February 20, 2023

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Nithin Kamath added that trading for long hours may affect mental health of active traders and stressed that active traders don't make money, primarily due to overtrading. "Longer hours can accentuate this," he said.

"I'm unsure how it will affect the mental health of active retail F&O traders in the long term. Tracking P&L for long hours is stressful & can affect life outside trading, the Zerodha CEO added.

"While it could boost revenues for the capital markets business in the short term, I'm unsure if retail investors will end up doing better. This could then potentially lead to lower participation and liquidity in the longer run, which will affect everyone."

Exchanges' equity and derivative platforms are currently open for trading between 9.15 am and 3.30 pm. The Securities and Exchange Board of India (SEBI) has drawn up a framework that allows bourses to keep F&O trading open until 11.55 pm and shares until 5 pm, Economic Times reported.

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