Market regulator Securities and Exchange Board of India (SEBI) has turned down NSE's proposal to extend market timings in the derivatives segment due to a lack of consensus among the broking community.
The proposal was of a phased plan to gradually extend trading hours for index F&O from 6 pm to 9 pm in the initial phase to help market participants act on global news flow in the evening, while in the second phase trading could be extended till 11:30 pm. Finally, it was suggested that in the third phase cash market trading hours be extended until 5 pm.
However, no consensus was reached among the broking community to extend trading hours due to additional costs and technological requirements, said Ashishkumar Chauhan, MD & CEO of NSE at an analyst conference following NSE's Q4 results. "As of now, the extended timeframe proposal is shelved," he added.
Dhiraj Agarwal, MD at Ambit Investment Managers weighed on this and said he would not prefer an extension of trading hours as well. "It is already long enough and market participants are working quite hard," he said in a conversation with CNBC-TV18.
Earlier this year, the stock brokers body Association of National Exchanges Members of India (Anmi) approved the plan.
In Q4FY24, NSE's net profit rose by 55 percent year-on-year (YoY), while revenue surged by 34 percent YoY to Rs 4,625 crore. The exchange will also issue four bonus shares for everyone held and also declare a dividend of Rs 90 per share.
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