The National Stock Exchange’s (NSE) proposal to extend trading hours in the derivatives segment was not approved by the Securities and Exchange Board of India (SEBI). The NSE had proposed an extension from the current closing time of 3:30 pm to 9 pm initially, potentially extending further to 11:30 pm, and ultimately aiming to prolong cash market trading until 5 pm. This initiative was designed to enhance the market participants’ ability to react to global market movements after Indian market hours.
Despite the strategic intent behind the proposal, it faced significant opposition from the broking community due to concerns about the additional operational costs and technological demands that extended hours would entail. As a consequence, SEBI returned the proposal to the NSE, citing a lack of broad consensus among stakeholders, which halted any changes to the current trading hours.
In contrast to this setback, the NSE demonstrated robust financial health in the fiscal year ending March 2024. The exchange reported a 20% increase in net profit and a 25% growth in revenue, underlining a strong market performance. Additionally, the NSE announced its plans to issue four bonus shares for every share held and declared a substantial dividend, reinforcing its commitment to delivering shareholder value.
The decision to maintain existing trading hours aligns with balancing market dynamics with the practical capabilities and readiness of the broker community, ensuring stability and continuity in market operations.
