SEBI has permitted Indian Stock Exchanges extended timings of their trading operations till 11:55 PM from 01 Oct 18. The present trading timings of 09:00 to 15:30 can be extended up to 23:55 Hrs. This is applicable for equity derivative segment as per the SEBI circular issued today.
With this stock exchanges can trade effectively up to midnight in line with commodity exchanges. This will integrate the commodity and derivative trading timings. One reason to allow this might be the concern of shifting of trading volumes to SGX on SGX Nifty. Although, Indian exchanges stopped overseas trading agreements with foreign exchanges, SGX has introduced a Contract Similar to Nifty.
stock exchanges extended timings up to mid night from 01 Oct 2018
Although it is mentioned in the circular that Equity derivative segment can be open for trading up to 11:55 PM, they can not be traded without allowing trading in their underlying securities. If that happens, there will be mismatch in futures and spot prices the time markets open next day.
More clarity is required about MTM settlement process, Risk management etc which is expected to be formulated in near future. This move may help to reduce the volatility as markets will be open through out Europe trading time and most part of US trading timings.
Intraday traders will get more time to use the leveraged positions like the commodity trading due to the stock exchanges extended timings . This may encourage traders / investors who are only in equity trading to start commodity trading too due to the time and system integrations. Lot of changes are going to happen and more details will be available in the following days.