Sebi is likely to delay the extension of trading hours at the derivatives markets till 11.55 pm, said a Business Standard report, adding that the development would mean that the plan to extend the time from next month may not become a reality.
According to the report, sources claimed that the delaying was due to the regulator not being able to resolve certain matters linked to the proposed extension.
“The detailed framework for the settlement process, risk management systems, monitoring trade positions, and surveillance mechanism is yet to be finalised,” a person close to the development was quoted as saying in the report.
While no clarification has yet come from the part of the regulator, an official claimed in the report that the prime reason behind the delay is the lack of consensus between the stock exchanges and brokers about what products shall be offered in the extended hours.
“The settlement may need to be done in two cycles. Trades carried out during the core market hours may be settled the way they are now. Evening trades may be required to settle the next morning,” an official was quoted saying in the report.