Within a day of announcing the extension of trading hours up to 5 pm, the Metropolitan Stock Exchange of India (MSE) today withdrew the circular on the same, but said it is reviewing systems and is engaging with the regulator Sebi on the issue.
The exchange had yesterday issued a notice announcing extension of trading hours in the equity segment from 9 am to 5 pm from Friday (July 7). Currently, the trading commences on the bourse at 9.15 am and closes at 3.30 pm.
In a revised circular today, the MSE said, "It is hereby informed that the implementation of the revised schedule of trading hours...Has been postponed".
"A circular mentioning the revised date of implementation will be issued separately," it added.
In a statement, a MSE spokesperson said, "Extension of trading hours is something the market players and various stakeholders have been seeking for a long time now."
"We would like to ensure not just us, but the whole ecosystem is ready for the change and it does require more time than we anticipated initially. We are thoroughly reviewing all arrangements and engaging the regulator as well in this regard," the spokesperson said.
The spokesperson added that the exchange would announce the new timelines once its done "with this thorough review".
The Securities and Exchange Board of India (Sebi), in October 2009, had permitted the stock exchanges to set the trading hours between 9 am to 5 pm.
The MSE, earlier known as MCX-SX, was set up by Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) and it commenced operations in the currency derivatives segment in October 2008.
It began operating as a full-fledged bourse with the launch of equity trading in February 2013.
While the MCX-SX had witnessed a strong performance in the initial period of its launch, the turnover saw a sharp plunge amid a payment crisis at the National Spot Exchange Ltd (NSEL), which was also promoted by Shah.
The exchange is aiming to make market presence as it is currently witnessing near-zero trade volumes in the equity segment.
The bourse is planning to launch new products in currency derivative, interest rate futures, equity and debt during 2017-18 to boost its trades.
The exchange said that the extension of normal market trading hours shall provide greater opportunity and efficiency for the market participants.
"Market participants shall be able to react to domestic and international events during the same day which could reduce gap up or gap down openings next day otherwise," it added.
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