The Securities and Exchange Board of India (Sebi) on Friday revised the trading duration in the equity derivatives segment, extending it till 11:55 pm. The new timings will be effective from October 1, 2018, Sebi said in a statement.
According to the markets regulator, the decision to extend the trading duration is “to enable integration of trading of various segments of securities market at the level of exchanges”. “…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, similar to the trading hours for commodity derivatives segment which are presently fixed between 10:00 am and 11:55 pm…so,” said Sebi.
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 are desirous of extending the trade timings beyond the extant trading hours, prior approval from Sebi shall be sought along with a detailed proposal including the framework for risk management, settlement process, monitoring of positions, availability of manpower, system capability, surveillance systems, etc,” the regulator said.
Earlier in December, the regulator had announced integration of stocks and commodities trading on a single exchange from October. This paved the way for stock exchanges such as the BSE and the National Stock Exchange.