SEBI is considering NSE’s proposal to extend derivatives trading hours


The National Stock Exchange (NSE) has asked the Securities and Exchange Board of India (SEBI) to hold an evening session for trading in index futures and options to help investors manage risk. ) has sent a proposal to.

The Securities and Exchange Board of India (SEBI) is reviewing the National Stock Exchange’s (NSE) proposal to extend trading hours for index derivatives. Although no decision has been taken yet by the markets regulator, they are considering the possibilities, a Reuters report said citing two sources with direct knowledge of the development.

An official of the country’s top exchange told the news agency that NSE wants Sebi to consider holding an evening session for trading in index futures and options to help investors manage risk.

Also read: How extending trading hours will help traders, challenge brokers

One of the sources reportedly said Sebi is assessing whether the extended timing will boost the already high derivatives trading volumes and whether trade settlements will be smooth. The source was quoted as saying: “For smooth settlement of trades, both NSE and BSE (Bombay Stock Exchange) and their respective clearing corporations need to prepare their systems to handle the extended trading hours.”

An official with knowledge of BSE’s stance on extended trading hours said the exchange is ready to facilitate the extension if the regulator approves NSE’s request.

Also read: Moments of anxiety rife ahead of NSE’s evening trading launch

SEBI and BSE did not respond to Reuters emails seeking comment. Moneycontrol has also not independently confirmed this news.

NSE has proposed to extend trading between 6 pm and 9 pm IST, with trades in the evening session to be settled the next day, NSE Chief Business Development Officer Sriram Krishnan said.

He said cash equity and single stock options have been excluded from the pilot scheme.


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