The Securities and Exchange Board of India (SEBI) has rejected the National Stock Exchange’s (NSE) proposal to extend trading hours of the Indian stock market, as per media reports.
The NSE had proposed to extend the cash market trading hours from the current 9 am-3:30 pm to 9 am-5 pm, in line with global markets.
During a post-earning call on 6th May, 2024, NSE’s MD & CEO Ashishkumar Chauhan stated that the regulator had rejected the proposal to extend market trading timings.
Chauhan said there is no plan to extend timings for trading hours currently as SEBI has returned the application due to stock brokers not providing the feedback that market regulator wanted.
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He further said as of now, extended timeframe for trading is shelved.
However, SEBI’s rejection of the proposal was based on a number of issues.
First, it expressed worry about the impact on market infrastructure and operational security.
Also Read: 10 things to know before investing in stock market
Extending trading hours would demand significant changes to trading technologies, back-office operations, and regulatory monitoring, raising difficulties for both market participants and regulators.
Some market participants were disappointed by the proposal’s rejection because they had hoped that the extension would bring Indian markets in line with global standards.
However, others have praised the decision, pointing out worries about the negative impact of extended trading hours on traders’ work-life balance and overall health.
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Disclaimer: The above content is for informational purposes only. The 1% News recommends consulting a SEBI-registered investment advisor before making any investment decision.
