NSE, BSE likely to extend trade timings by next month

Last Updated: Monday, November 2, 2009 - 16:07

New Delhi: The country`s two prime bourses,
the National Stock Exchange and the Bombay Stock Exchange,
are likely to extend the trading time by two and half hours
from next month and a formal notification to this effect is
expected shortly.

"Both the exchanges (BSE and NSE) have discussed the
issue (extension of trade timings) and a formal notification
is expected shortly," a senior exchange official said.

Last month, market regulator Securities and Exchange
Board of India (Sebi) approved extension of the trading
timings by up to two-and-a-half hours from 9 am to 5 pm. The
current market hours stand from 9.55 am to 3.30 pm.

"Both the exchanges have already deliberated on the issue
and they are likely to implement it after the expiry of the
stock futures contract on November 26 or at the beginning of
December contract," said an official privy to the development.

The new trading hours would now help integrate the Indian
bourses with Singapore and other Asian markets in the morning
hours and the European market in the evening hours.

In Singapore, which is around two and a half hours ahead
of India, trading sessions are held between 9 am and 12.30 pm
and 2 pm and 5 pm (local time).

"Right now we are losing out to SGX Nifty (Indian Nifty
traded in Singapore bourse) in terms of volume. By aligning
market hours with global bourses, we can maximise amount of
capital allocation to the Indian stocks," ICICI Securities
Executive Director Anup Bagchi said.

Analysts feel the sooner the bourses implement the
changes, the better it would be for them as they can increase
the transaction fees.

"There is a stiff competition between the BSE, NSE and
the new entrant MCX-SX. The exchanges need not wait till the
expiry of the derivatives contract to implement the change as
it would result in losing out on foreign funds interested in
investing here," SMC Capitals Equity Head Jagannadham
Thunuguntla said.

"... It has been decided to permit the stock exchanges to
set their trading hours (in the cash and derivatives segments)
subject to the condition that the trading hours are between 9
am and 5 pm," Sebi had said in a statement.

The market regulator had further asked the bourses to
reset their timings provided they have in place risk
management system and infrastructure commensurate to the
trading hours.

Bagchi added that brokers are sceptical that with the
extension of the trading hours there would be a "certain cost
increase for an uncertain upside in profits."

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First Published: Monday, November 2, 2009 - 16:07

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