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MSEI temporarily puts off extension of trading hours

A mock-test to be conducted with brokers first before taking any decision on the matter

Samie Modak  |  Mumbai 

MSEI, trade time, markets, stocks
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The Metropolitan Stock Exchange of (MSEI) has put on hold its plan to extend trading hours, pending regulatory approval. However, the exchange, which has negligible volumes in the equities segment, hasn’t given up the plan. Abhijit Chakraborty, chief operating officer, MSEI, told Bloomberg they would conduct a mock test with first, before extending the timing to 5 pm, which could happen “very soon”.

Following MSEI’s proposal, both the National Stock Exchange (NSE) and the deliberated an extension of However, they didn’t get a favourable broking community. Many believe the increase in costs could outweigh the benefits of having longer Also, it won’t result in higher volumes, they fear, as there is concentration in trading activity during the start and close of a session.

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Currently, the Indian are open from 9 am to 3.30 pm. An extension till 5 pm would see joining Singapore in having the longest in Asia. 
 
Singapore’s SGX is open from 9 am to 5 pm. The shortest are in Shanghai and China. Taiwan, Thailand, Japan and Australia have also shorter than South Korea is open for 6.5 hours and in Indonesia for seven hours.

The rules allow stock exchanges to set in the equity and derivatives segments between 9 am and 5 pm. Till date, and BSE, where most trading volumes take place, haven’t availed of the option. Prior to 2009, the trading duration was only 5.5 hours, with opening at 9.55 am. 

First Published: Wed, July 05 2017. 23:51 IST
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