Last year, the National Stock Exchange (NSE) had proposed extending trading hours for index derivatives, but Securities and Exchange Board of India (SEBI), the market regulator, gave it a thumbs-down. Why? 

Well, it seems like brokers weren’t too keen on the idea. As per a report by The Economic Times,  SEBI returned the application because brokers didn’t provide the feedback SEBI was looking for. As a result, the plan for extended trading hours is currently on hold.

Currently, trading on both platforms – Futures and Options (F&O) segment and cash segment – ends at 3:30 pm. But NSE wanted to add another evening session from 6 pm to 9 pm for trading in index F&O. While longer trading hours could mean more revenue for exchanges due to increased volumes, derivative traders raised concerns about work-life balance.

Additionally, traditional broking firms, which rely more on manpower and relationship managers, weren’t in favour of longer hours. On the other hand, discount brokers with advanced technology were more open to the idea. In February, the Association of National Exchanges Members of India (ANMI) had given in-principle approval to increasing trading hours for index futures, subject to sorting of operational issues such as margins and trade files.

NSE’s argument for extended hours was to give traders a chance to react to global events, especially when the US market opens. But despite some support for the move, SEBI decided to put the brakes on it for now.

Now, let’s talk about the global scene. Major markets like the New York Stock Exchange and the London Stock Exchange offer slightly longer trading times, while others go even further. This difference becomes more apparent when we consider the 24/7 operations of Forex and cryptocurrency markets, showing how global finance is evolving.

So, what does this mean for us? Well, for now, trading hours remain unchanged. But who knows what the future holds? Stay tuned for more updates, and in the meantime, keep an eye on your investments and make informed decisions. Happy investing, everyone!

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Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing in market-linked instruments.