The Securities and Exchange Board of India (SEBI) is reportedly considering the possibility of extending trading hours for the cash market, following the submission of a proposal by the National Stock Exchange (NSE) for extended trading hours in the futures and options (F&O) segment.
The NSE's phased plan suggests a gradual approach to extending trading hours. In the initial phase, it proposes extending trading hours for Index F&O from 6 pm to 9 pm.
The second phase suggests Index F&O trading be extended till 11.30 pm. Finally, in the third phase, the plan is to extend cash market trading hours until 5 pm.
Also Read: SME Frenzy: SEBI announces T2T, ASM surveillance to curb speculative activity in SME Stocks
Proponents of the trading hour extension argue that it is necessary to align with global markets and accommodate market-moving news that often emerges in the evening hours.
However, there are opposing viewpoints as well. Some believe that aligning with global markets is challenging, while others argue that extended trading hours may increase costs for brokerages, disrupt traders' work-life balance, and limit the time available for traders to conduct the necessary research.
SEBI is said to be cautious and is keen to ensure the stability and efficiency of market systems before greenlighting any significant changes to trading hours.
(With inputs from Reuters)
