All stock exchanges are likely to go for the maximum possible trading hours as they have been demanding for trading hours to be extended to 9 am to 9 pm,” SMC Capitals Equity Head Jagannadham Thunuguntla said.

1. Bourses get more hours for trading
B.S. Srinivasalu Reddy
Mumbai, October 24, 2009
The Securities and Exchange Board of India (Sebi) on Friday allowed stock exchanges (SEs) to
extend their trading hours in the cash and derivatives segments, but asked them to squeeze the same
between 9 am and 5 pm.
With this move, some trade that had shifted to SGX Nifty (India's Nifty traded on the Singapore
Stock Exchange) can now be brought back to the country.
This may see the National Stock Exchange (NSE) opting for the 9 am start in a bid to align with the
Singapore Stock Exchange (SGX), which opens two hours in advance. Currently, Nifty stocks traded
on the SGX are stealing the thunder.
"In consultation with the stock exchanges and other market participants, it has been decided to
permit the SEs to set their trading hours (in cash and derivatives segments)…," Sebi said in a
circular.
"The new trading hours would now help integrate the Indian bourses with Singapore and other Asian
markets in the morning hours, and the European markets in the evening hours," said
Jagannadham Thunuguntla, equity head, SMC Capitals.
But this move falls short of the demand of broking houses to link the domestic trading hours with
that of the US, at least for a while. SEs, however, welcomed the Sebi decision.
The permission is subject to two conditions-the trading hours are between 9 am and 5 pm, and the
exchange has to put in place a risk management system and infrastructure commensurate with the
trading hours.
This gives scope for SEs to extend trading hours by nearly 145 minutes, to up to eight hours.
Currently, trading on major exchanges-Bombay Stock Exchange (BSE) and NSE-is open for 5.35
hours daily-from 9.55 am to 3.30 pm.
Punters feel the decision is unlikely to make any material change, but it may affect the quality of
trading. They also feel the move was being bulldozed by SEs, which are trying to garner more
revenues by widening the trading window.

2. "This decision is unlikely to bring a material change in the trading pattern. It should have provided
for a window linking Indian market timings with that of the US to derive wider benefits," said Dinesh
Thakkar, chairman and managing director of Angel Broking.
In fact, linking Indian trading hours with that of the US was one of the main demands of the brokers.
They cited global linkages in the markets and the growing relevance of global data for domestic
market movements, as the reasons.
Besides, it would allow the USbased bosses of foreign institutional investors (FIIs) to contribute in
the form of advice.
"US investors would prefer to take decisions on their India holdings themselves. Besides, a special
window between 7-9 pm will also enable employees to participate in trading at leisure," Thakkar
added.
THE extended trading hours may also lead to employee fatigue and lack of devotion to market
analysis. Post-market procedures including bill printing and despatch would also get upset.
Deena Mehta, managing director of Asit C. Mehta Investment Intermediates, said, "The extended
trading hours are likely to affect the present culture of studying various factors that influence market
behaviour, before the start of trading. Besides, it could encourage undesirable speculation and day-
trading, more than orderly investment." Extended hours will provide an extended window for
speculators and day-traders (who square off their deals within a trading session) to keep their trades
open for that extended time, a critical factor for taking enhanced positions.
Another broking veteran, who wished to remain anonymous, alleged that the move was intended
more to boost SE revenues at a time when the transaction charges are low.
Managing the employees will not be an issue, said Thakkar.