India’s largest bourse, the National Stock Exchange (NSE), is finalising its plans to extend the equity derivatives trading hours in a phased manner, with an aim to offer an opportunity to domestic traders to react to global events, a report said.
An evening session for equity derivatives trading between 6 pm and 9 pm is likely to be proposed by the stock exchange, an Economic Times report said, quoting multiple people with knowledge of the matter.
The market participants can continue trading futures and options (F&O) contracts in the evening session after the regular session which begins at 9:15 am and ends at 3:30 pm, the report said.
At a later stage, the NSE might also consider to extend the evening session till 11:30 pm, the report added, quoting one of the sources.
The bourse is considering to introduce products in the evening session in a phased manner and plans begin with index futures and options including Nifty 50 and Bank Nifty, the business daily report said.
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After index options, the NSE could consider stock derivatives. The expiry days all and timings for all products will remain unchanged, it added.
Moreover, NSE proposes to treat the evening session as a separate session and to settle trades made during the evening session along with the next day’s regular session, the newspaper reported.
The NSE has submitted its plan to the stock market regulator Securities and Exchange Board of India (SEBI) for approval.
Extension of trading hours is likely to help domestic traders and investors to react to global news events as the Indian stock market ends before the US markets open.
Sebi has already set up rules for bourses to keep futures and options (F&0) trading open until 11:55 pm and equity shares trading until 5 pm.
Source Link: NSE plans to extend trading hours for derivatives segment in a phased manner: Report | Mint