The Securities and Exchange Board of India (Sebi) on Friday extended trading hours for the equity derivatives segment by more than eight hours.
“It has been decided to permit stock exchanges to set their trading hours in the equity derivatives segment between 9:00 AM and 11:55 PM, similar to the trading hours for commodity derivatives segment,” the market regulator said in a circular.
Currently, the timings for the derivatives market are 9:00AM to 3:30PM — similar to the cash segment. Since allowing derivatives trading in 2000, the trading timings of both futures and options (F&O), and cash market have remained linked.
Sebi has said exchanges and their clearing corporations will have to “put in place risk management system and infrastructure commensurate to the trading hours.”
The extension in timings will be permitted from October 1. However, stock exchanges will have to seek Sebi’s permission to extend trading hours.
“In case, stock exchanges are desirous of extending the trade timings beyond the trading hours, prior approval from Sebi shall be sought along with a detailed proposal including the framework for risk management, settlement process, monitoring of positions, availability of manpower, system capability, surveillance systems,” the circular said.