The market regulator on Friday allowed stock exchanges to extend their trading time by 2 hours 25 minutes. However, the trading community is indifferent about the permission as they say that additional hours might not mean more number of trades (volumes, in trading parlance).

The Securities and Exchange Board of India (Sebi) has informed the stock exchanges that they can set their trading hours (in the cash and derivatives segments) between 9 am and 5 pm. The stock markets currently trade between 9:55 am and 3:30 pm.

Both of the bigger stock exchanges in the country — National Stock Exchange and the Bombay Stock Exchange — have welcomed the move by the regulator. The reason for extending the timing is being seen as aligning Indian markets as far as possible with international markets, as it would attract international trading. Other Asian markets — especially Japan, Korea and Taiwan — open for trading much ahead of the Indian time. European markets, on the other hand, open late — 3-5.30 hours behind the Indian time. As Wall Street starts trading after 6.30 pm Indian time, well after the BSE and the NSE close for the day, there’s no way Indian investors can get the US market’s latest trading trends.

The Secondary Market Advisory Committee had advised Sebi, after consulting brokers and stock exchanges, to extend trading timings. The spokesperson of one stock exchange said that the decision has been taken by Sebi to align trade timings in cash and derivatives segment with that of the currency market.

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