Leading bourses BSE and NSE hailed Sebi's decision to extend trading hours for equity derivatives contracts till 11:55 pm from October 1, terming it as the logical step towards a universal exchange model and bringing parity between equity and commodities trading.
Currently, trading in equities, both derivatives and cash, is allowed from 9:15 am to 3:30 pm, while international investors get to trade up to 11:55 pm in equity derivatives. On the other hand, commodities derivatives are traded till 11:55 pm now by both domestic and international investors.
Welcoming the Sebi move, BSE chief Ashishkumar Chauhan said, "Introduction of the extended trading hours is a positive development and will bring domestic market in line with international markets and domestic commodity derivative markets."
He further said, "The biggest advantage from an investor's perspective is that this will help him/her hedge the positions, an advantage that is at present available only to foreign investors. Our investors are sitting on open positions as of now, unable to do anything, be it a good or a bad market announcement."
Earlier in the day, a Sebi circular said, "It has been decided to permit stock exchanges to set their trading hours in the equity derivatives segment between 9.00 am and 11.55 pm effective October 1, 2018."
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