SEBI approves extension of trading hours on stock exchanges


#1

After much discussion and a lot of rumours and innuendo SEBI has finally approved the extension of trading hours for equity derivatives.

The SEBI Circular states:

With a view to enable integration of trading of various segments of securities market at the level of exchanges, it has been decided to permit Stock Exchanges to set their trading hours in the Equity Derivatives Segment between 9:00 AM and 11:55 PM, similar to the trading hours for Commodity Derivatives Segment which are presently fixed between 10:00 AM and 11:55 PM, provided that the Stock Exchange and its Clearing Corporation(s) have in place risk management system and infrastructure commensurate to the trading hours.

@nithin what do you think would be the impact on trading volumes / traders / brokers / exchanges etc.?


An question to Nithin@zerodha
Extension of Trading hours by SEBI
#2

Volumes will Increase, More Hours Means more trading :wink::wink: Good for The Market , Move seems to be to suppress SGX nifty and allow FII participation.


#3

This decision might have its own pros and cons.

  1. This is not a welcome move for professional traders . Since it will make even difficult for them to emphasize on markets throughout the session. How is one supposed to be working for fifteen hours this is not acceptable :triumph::fearful::fearful::grimacing:
    2)It is certainly going to enhance cost of all broking firms substantially.
    3)Do any other nation have such long extented trading hours . Answer might be no.
    Hope this decision never get implimented otherwise traders would be the worst sufferers .

#4

This is not guaranteed and last such experiment failed terribly keeping volumes more or less - same!

Good Analysis Herein …


#5

SEBI is demonstrating they can do stupid & crazy thing SEBI & its board members really don’t know , how stress full & physically painful and also needs lot of resources for trading/ working for a very long period of time , its really impracticable.


Futures trading 9 am to 11.55 pm
#6

calm down people. SEBI has only ALLOWED these timings for exchanges.

Its up to the exchanges if they wish to implement it and i m pretty sure they won’t for very obvious reasons.


#7

Good luck competing against traders from US, Europe, Singapore…


#8

Does it apply to Index Derivatives as well or only stock derivatives?


#9

exchnages were asking for it for a very long time


#10

@CJ_d Good luck competing against traders from US, Europe, Singapore…

we indians will kick their butt ,its party time ,party party


#11

With SGX doing what they recently did - float a parallel Nifty kind of contract when asked to shut down SGX Nifty without any approval from either the exchange or SEBI. Indian exchanges need more muscle power to compete with the global ones which offer much longer hours of derivative trading.

So yeah, good move I guess.


#12

You are wrong, sir.
image


#14

@nithin Do you think exchanges will extend trading hours of Stock derivatives also?
How to trade stock derivative with out stock price?


#15

Will there be increase in brokerage and tax ?


#16

#17

Till now only commodity traders used to have marital tiffs about mkt timing.

Now stk derivative traders may also have. :joy:


#18

My point of view is, the liquidity increases but,
It greatly affects the volatility.
Decrease in the volatility over a period of hour in a day.
Slow movement of market price compared to conventional market timings.
Provides oppurnitiy and convenient timing for all sort of working people to work in the market.
happy trading :wink:


#19

But why?, i can understand for commodity since its international , but stocks ?.

do they expect traders to watch thousands or even hundreds of stocks from 9 am to 11 pm everyday. you will go crazy.


#20

Yes , i guess i m wrong. Still its crazy if they expect traders to sit stock derivatives all day.

Whatever timings we have now is just fine for stocks.

Assuming they did implement this , indian stocks will be active during asian session only , beyond that i doubt traders will have the time.


#21

This is great news for some one like me who has office between 9 am and 8 pm.