Brokers for status quo in trading hrs, but not to boycott
Mumbai: Stock brokers on Wednesday demanded both the Bombay Stock Exchange and National Stock Exchange to maintain status-quo in their trading hours, until adequate infrastructure is in place.
However, the traders will not boycott trading even if the bourses go ahead with their decision to start trading at 9 am from January 4, as announced early this month, Association of National Exchange Members of India (ANMI) said.
The body, which claims the support of 850 members, have approached stock exchanges, regulators and Government to look into the extension of trading hours until adequate banking infrastructure is in place.
"The association is of the view that it is necessary to maintain status-quo on the timing, till adequate infrastructure is in place. There should not be any hurry to extend the market timing," ANMI`s President, EMC Palaniappan told reporters here.
Even if the trading starts at 9.00 am on Monday, ANMI will monitor the efficiency and performance of the trading continuously and provide feedback to its members, Palaniappan said.
BSE Brokers Forum, a prominent body of BSE brokers, also demanded the bourses to retain status-quo in the current trading hours till a consensus emerge on the matter amongst various market participants.
"We appeal to both the exchanges and authorities concerned to form a committee consisting of various stakeholders to deliberate on the matter and bring consensus and till such time keep in abeyance the decision to extend market timings from 4th January, 2010," the Forum said in a statement.
Reflecting an intense rivalry between BSE and NSE, both exchanges, early this month, had said that their trading will start at 9 am from January 4, nearly one hour before the current opening time, inviting protests from borkers and investors.
Although, extended market hours seems inevitable in the long run, current infrastructure and environment does not completely support the move, he said.
"A weak infrastructure will not be in the interest of any concerned party and investor may lose out in the short run,"Palaniappan said.
Citing a recent survey, ANMI said nearly 62 per cent of its members are against the move as extending the trading hours could put additional load on the system.
However, nearly 38 per cent members opined that extended timings will increase the trading volume.
The association has urged the RBI to improve the banking infrastrcuture as most of the banks across the country do not have RTGS facility, which is necessary for high value transactions, he said.
The increase in trading hours at this juncture may not result in a sufficient increase in volumes, which would be essential to maintain adequate depth in execution of trades Palaniappan said, adding that a reduction in depth may act as a deterrent to investors, he said.
The move may also put undue stress on manpower, which will result in "poor productivity and costly errors" besides, but increasing attrition levels in the industry, he said.
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