NSE proposed extending trading hours in the derivatives segment from 6 pm to 9 pm. It Aimed to allow participants to react to global cues, and enhance market efficiency.

SEBI’s Decision:

• SEBI rejected the proposal citing a lack of consensus among brokers.
• Concerns were raised over increased costs and need for additional technology.

Industry Response:

• NSE’s CEO confirms the proposal was put on hold, with no immediate plans for an extension.
• Mixed reactions from brokers’ bodies – some in favor, others against separate segments.

Regulatory Challenges:

• SEBI questioned the exchange’s operations, settlement processes, and risk management.
• Brokers raised concerns over compliance amid regulatory changes.

Technical and Financial Implications:

• Brokers feared additional investment in technology and human resources.
• NSE intended to limit trading to index derivatives during extended hours.

Market Dynamics:

• The proposal aimed to allow hedging against negative global news.
• The disparity in trading hours between domestic and global markets was highlighted.

Regulatory Clarifications:

• SEBI stressed unanimity among exchanges, brokers, and investors for an hour extension.
• The chairperson emphasized the need for system capacity enhancement before extension.

Future Outlook:

• Rejection prompts reflection on market direction and sustainability.
• Need for collaboration among stakeholders to address concerns and foster growth.

SEBI’s decision reflects the commitment to fair, transparent, and resilient markets. Importance of balancing market efficiency with regulatory safeguards for long-term stability.