India’s securities market regulator SEBI has released a discussion paper to extend the trading hours on the country’s financial exchanges to better align them with international markets.
“It is important to align Indian markets, as far as possible, with those of the international markets to facilitate the assimilation of any economic information that may flow in from other global markets,” Securities and Exchange Board of India (SEBI) said in a discussion paper.
Presently, the exchange-traded equity derivatives market is open from 9:55 am to 3:30 pm and the market timings are co-terminus with those of the underlying cash market. While exchange-traded currency derivatives market operates from 9:00 am to 5:00 pm, exchange-traded commodity futures market operates from 8:00 am till 11:30pm.
SEBI said an extension of trading hours could enable the domestic market to take advantage of movements in international markets, make markets more efficient, and attract trading interest.
The regulator said an extension of trading hours also raised issues including risk management concerns and a potential need for higher margins that needed to be considered.
SEBI has sought the feedback from market participants by April 10.
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