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Sebi defers October 1 deadline for bourses to extend trading time for equity derivatives

Updated : September 18, 2018 03:36:03 IST

Markets regulator, Securities and Exchange Board of India (Sebi), on Tuesday deferred October 1 deadline to extend the trading time for equity derivatives till 11.55 PM, sources privy to the developments told CNBC-TV18.

The move by markets regulator to extend trading time for equity derivatives is part of Sebi's efforts to enable integration of stocks and commodities trading on a single exchange.

Brokers from BSE and NSE are yet to arrive on agreement as some research still had to be done from their end in terms of cost implementation and logistic requirement, sources said.

As the exchanges could not get brokers on board, they could not file a proposal with the market regulator for extension of trading hours.

Separately, the brokers had also reached out to Sebi expressing their concerns and asking the regulator to extend the timeline till they understood the cost implications and logistical requirements.

Earlier in a circular, Sebi had decided to permit stock exchanges to set their trading hours in the equity derivatives segment between 9:00 AM and 11:55 PM.

This is similar to the trading hours for commodity derivatives segment which are presently fixed between 10 AM and 11:55 PM.

Reacting to the development, Deena Mehta, managing director, Asit C Mehta Investment, said some preference is required in terms of how brokers will be able to discharge their liability in absence of banking hours.

According to Mehta, it's a good move by Sebi to defer the decision and planning to take everyone on board.

Mehta said country cannot stay out of the world market for a very long time and will have to move timings followed by other markets.

However, it’s important that Sebi does a cost benefit analysis when such big changes are being planned, she said.

If the timings of trading hours are extended then the brokers will have to put staff in order and one will also have to think about bank timings, Mehta added.
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