F&O trading hours extension: SEBI Chief seeks investor and broker feedback before deciding

The Securities and Exchange Board of India (SEBI) is mulling allowing an extension of trading hours for equity derivatives, prompted by the National Stock Exchange's (NSE) proposal for longer hours in the futures and options (F&O) segment. However, SEBI Chairperson Madhabi Puri Buch emphasized that a final decision rests on feedback from a wider spectrum of market stakeholders.

Buch highlighted the need for input from brokers and investors, underscoring their pivotal roles in the capital market ecosystem. While discussions with exchanges have commenced, Buch stressed the importance of engaging the broader community, including investors and the vast broking community, before reaching a conclusive decision.

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The significance of this deliberation lies in NSE's belief that expanded F&O trading hours could offer traders and investors enhanced opportunities to respond swiftly to global and domestic developments. This initiative aligns with practices in numerous global exchanges that already operate longer hours in their derivatives segments compared to Indian bourses.

Ashishkumar Chauhan, the MD & CEO of NSE, highlighted the technological capability for extended trading and its potential benefits for both traders and investors. Acknowledging the cost aspect, Chauhan conveyed NSE's proposal to Sebi, emphasizing the technological readiness for prolonged trading hours.

Chauhan also pointed out NSE's historical evolution, highlighting India's early adoption of automation and the subsequent increase in trading hours. He noted the disparity between Indian trading hours and those of exchanges that embraced automation later, now operating for over 20 hours daily.

The decision-making process at Sebi underscores the significance of comprehensive feedback from market participants, hinting at potential changes in F&O trading hours in line with evolving market dynamics.