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- The Securities and Exchange Board of India (Sebi) has rejected the National Stock Exchange’s (NSE) proposal to extend market hours in the derivatives segment.
- Sebi’s decision was influenced by a lack of consensus among the broker community, according to NSE’s MD & CEO Ashishkumar Chauhan.
- The proposal for extended trading hours, which had received in-principle approval from the Association of National Exchange Members of India (ANMI), has been shelved for now.
Sebi rejects NSE’s proposal to extend trading hours in the derivatives segment, citing lack of consensus among brokers. The decision puts a halt to NSE’s phased plan for extended trading hours.
Sebi Rejects NSE’s Proposal for Extended Trading Hours
The Securities and Exchange Board of India (Sebi) has denied the National Stock Exchange’s (NSE) proposal to extend trading hours in the derivatives segment. The decision came after a lack of consensus among the broker community, as reported by NSE’s MD & CEO Ashishkumar Chauhan during an analyst call.
Lack of Broker Consensus Influences Decision
Chauhan revealed that stock brokers did not provide feedback to Sebi regarding the extension of trading hours. This lack of consensus among brokers has led to the shelving of the proposal for extended trading hours.
ANMI’s In-Principle Approval for Extended Trading Hours
Earlier in February, the Association of National Exchange Members of India (ANMI) had given its in-principle approval for the proposal to extend trading hours for index futures. However, this approval did not sway Sebi’s decision.
NSE’s Phased Plan for Extended Trading Hours
Last year, NSE had proposed a phased plan for extending trading hours for equity derivatives. The first phase would have seen evening sessions between 6 p.m. and 9 p.m. IST, in addition to the regular trading hours of 9:15 a.m. to 3:30 p.m. The second phase would have extended index derivatives trading until 11:30 PM, and the final phase would have extended cash market trading hours until 5 PM.
Conclusion
Despite the in-principle approval from ANMI, Sebi’s rejection of the proposal for extended trading hours in the derivatives segment puts a halt to NSE’s phased plan. The lack of consensus among brokers was a significant factor in this decision. For now, the proposal for extended trading hours has been shelved.
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