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Stock brokers’ body Association of National Exchanges Members of India (ANMI) is onboard with the National Stock Exchange (NSE) proposal of extending the derivatives trading hours, sources said.
The association’s board has given an in-principle approval for extending market timing by three hours for index derivatives, subject to clarity on operational issues.
The approval from brokers’ lobby is key for building consensus on having a separate evening session between 6 pm and 9 pm as proposed by NSE.
Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch had recently said that the broking community was a ‘divided house’ on market hour extension.
The Brokers’ Industry Standards Forum (ISF), comprising members from three brokers’ associations, will take up suggestions in its next board meeting to be held later this month.
“The Brokers’ ISF has requested the member associations to provide their individual views on extension of market hours. On receipt of all the views, the Brokers ISF will submit its recommendations after due deliberations. We expect to complete this exercise in a month or so,” said Uttam Bagri of Brokers ISF.
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ISF comprises members from three broker bodies, including ANMI, Bombay Stock Exchange Brokers' Forum (BBF), and Commodity Participants Association of India (CPAI).
Though ANMI has given its nod, BBF is yet to firm up its stance, said sources.
“There have been many changes in the last few years and the timelines for compliance have also been made tight. We are preparing for a T+0 settlement cycle while the block mechanism for the secondary market is also a work in progress. A lot is to be looked at on technology, server requirements, and third-party deals before extending the market hours,” said an official from one of the industry associations.
Sebi had earlier clarified that it had not reached a stage to seek investors’ opinion on the extension. On the launch of ISF, Buch had said that the regulator will question the exchanges on operational issues.
“One needs rest after a marathon before going for another. A certain time is required by the systems for maintenance, for doing migration, upgrades, and adding functionalities. In theory, if you take it to extreme and talk about a 24-hour exchange, then it will be like changing the tyres in an F1 track without even going to the pit stop,” she said.
