NSE Plans to Extend Equity Derivatives Trading Hours in Phased Manner

NSE Plans to Extend Equity Derivatives Trading Hours in Phased Manner Image/Mint

VoM News Desk | September 25, 2023 | 03:17 PM IST | Breaking News | Follow on Google News

NSE Plans to Extend Equity Derivatives Trading Hours in Phased Manner

The National Stock Exchange (NSE), India’s largest bourse, is in the final stages of planning to extend trading hours for equity derivatives. The proposed evening session for equity derivatives trading would run from 6 pm to 9 pm, according to sources cited in an Economic Times report.

This extended trading session aims to provide domestic traders with an opportunity to react to global events, as it would allow them to continue trading futures and options (F&O) contracts beyond the regular session, which operates from 9:15 am to 3:30 pm. In a later stage, the NSE might consider further extending the evening session until 11:30 pm.

The NSE’s plans begin with introducing index futures and options, including Nifty 50 and Bank Nifty, during the evening session. Following this, the exchange may expand to include stock derivatives. The expiry days and timings for all products will remain unchanged.

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To manage the extended trading hours effectively, the NSE is proposing to treat the evening session as a separate session and settle trades made during the evening session along with the next day’s regular session.

The NSE has submitted its proposal to the Securities and Exchange Board of India (SEBI) for approval. This move to extend trading hours is expected to enable domestic traders and investors to react to global news events more effectively since the Indian stock market typically closes before the opening of US markets.

SEBI has already established rules for keeping futures and options (F&O) trading open until 11:55 pm and equity shares trading until 5 pm.

VoM News Desk

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