Stock market trading hours will not be extended for now, says NSE CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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National Stock Exchange MD & CEO Ashishkumar Chauhan said that market regulator Securities and Exchange Board of India (SEBI) has rejected the exchange’s proposal to increase trading time.

Chauhan made these remarks during an analyst call.

CNBC-TV18 had reported in February that the proposal to extend trading hours for index futures has received in-principle approval from the Association of National Exchange Members of India (ANMI) and that the Brokers Industry Standards Forum (ISF) will send a formal letter to SEBI in this regard.

It was earlier reported in September last year that the market regulator is considering extending trading hours for the cash market after a proposal from the National Stock Exchange (NSE).

The proposal was a phased plan to gradually extend trading hours. In the initial phase, the proposal was to extend the trading hours for index F&O from 6 PM to 9 PM, while the second phase suggested 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.

However, the NSE CEO said that stock brokers seem to have not given the feedback that the regulator sought with regards to extending trading hours.

“So as of now, extended timeframe for trading, is shelved,” he said.

NSE recently reported its Q4 results, where its net profit rose by 55% from last year, while its operating revenue surged by 34% to ₹4,625 crore. The exchange will also issue four bonus shares for every one held and also declared a dividend of ₹90 per share.

Speaking to CNBC-TV18, Deena Mehta, MD of Asit C Mehta Investment Interrmediates expressed that the extension of trading hours hasn’t been implemented and noted this as a prudent decision.

She said, “These extended trading hours has not gone through, and I think it is a rightful decision, because we are only going to increase volumes in options and derivatives and if people are just going to speculate they are not really invested in the markets. You see the number of people who are really participating, hardly, one or two crores will be participating in cash market, and the people who participate in derivatives run into few lakhs.”

Dhiraj Relli, MD & CEO of HDFC Securities said, “I think it’s ‘no’ means ‘not yet’. I know that SEBI has rejected the plea and as of now, brokers are divided and they feel that the times are not right, probably for extended hours. But my personal take is that eventually after calibration, it will happen over a period of time.”

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow