Sebi order on extending derivative trading: Key takeaways and challenges

The purpose of the derivatives market is to build such structured products that can help hedge the underlying portfolio systematically

In a move aimed at attracting investors dealing in Indian products on foreign exchanges in Singapore and Dubai, the Securities and Exchange Board of India (Sebi) on Friday allowed domestic stock exchanges to extend equity derivatives trading until 11.55 pm. The new timings will also allow a better alignment with commodity markets amid implementation of universal exchanges, which function until 11:55 pm. In this Business Standard special piece, Deven Choksey, managing director of KR Choksey Investment Managers, looks at the Sebi order and explains the key takeaways.

The first good thing about that the entire development is that it