SEBI allows exchanges to extend trading time for equity derivatives till 11.55 pm from 1 October

New Delhi: Markets regulator SEBI on Friday allowed exchanges to extend the trading time for equity derivatives till 11.55 pm from 1 October. The move is part of SEBI’s efforts to enable integration of stocks and commodities trading on a single exchange. “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,” SEBI said in a circular. This is similar to the trading hours for commodity derivatives segment which are presently fixed between 10 am and 11:55 pm. [caption id=“attachment_4307425” align=“alignleft” width=“380”] Representational image. Reuters[/caption] The permission is subject to stock exchanges and clearing corporations have in place risk management system and infrastructure commensurate to the trading hours. In case, stock exchanges plan to extend the trade timings beyond the extant trading hours, they would require prior approval from SEBI, according to the circular. The bourses would also be required to submit a detailed proposal, including the framework for risk management, settlement process, monitoring of positions, availability of manpower, system capability and surveillance systems. This will come into effect from 1 October, the Securities and Exchange Board of India (SEBI) said. In December, the SEBI board had announced the much-awaited integration of stocks and commodities trading on a single exchange from October this year. Currently, commodity derivatives are traded on separate exchanges, which include MCX and NCDEX. SEBI has already been regulating the commodities derivatives market after the merger of erstwhile Forward Markets Commission (FMC) with it. In his budget for 2017-18, Finance Minister Arun Jaitley had proposed that the commodities and securities derivative markets would be integrated further by integrating the participants, brokers and operational frameworks. “We welcome SEBI’s move to permit Indian stock exchanges to set their trading hours in the equity derivative segment between 9 am and 11.55 pm. Globally, the derivative exchanges are already following the extended trading hours. The introduction of the extended hours is a positive development and will bring Indian market in line with the international market and Indian commodity derivative markets,” Ashishkumar Chauhan, MD&CEO, BSE said. With inputs from PTI