Top 3 benefits for investors as SEBI extends trading hours for equity derivatives.
Brokerage houses are taking the decision in the right spirits and see investors benefiting in the long run. It will help in bringing down volatility and create more opportunities for investors.
India’s market regulator, SEBI in a landmark decision on May 4 announced that stock exchanges will now be able to trade in the Equity Derivatives Segment between 9 am and 11.55 pm. The motive behind the change is to bring the timings in-line with the commodity market.
This step was taken with a view to enable integration of trading of various segments of securities market at the level of exchanges from October 1. As of now, trading is allowed from 9.15 am until 3.30 pm.
Stock exchanges seeking to extend their trading hours will have to seek prior approval from SEBI by submitting a detailed proposal, the circular said.
That should include the framework for risk management, settlement process, monitoring of positions, availability of manpower, system capability, and surveillance systems.
Brokerage houses are taking the decision in the right spirits and see investors benefiting in the long run. It will help in bringing down volatility and create more opportunities for investors, suggest experts.
SEBI’s announcement to allow exchanges to extend derivatives trading till 11:55 pm is a positive move. Traders can benefit by avoiding overnight swings and can align their trading to be more in sync with global markets. Longer hours will also bring in more opportunities for traders” Anup Chandak, Senior Manager for Derivatives Advisory,
I don’t think the volumes will go up significantly, what we observed when the market opening was preponed was the same positions get segregated across the additional time frame,
BSE said that globally, the derivative exchanges are already following the extended trading hours. The introduction of the extended hours is a positive development.
Limaye of NSE says that it is a good development for the market since we are moving to in line with global standards. “There are enough examples where derivative market opens much longer time than cash market. So again I would say it is a good move.
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