Indian markets regulator SEBI (Securities and Exchange Board of India) has permitted the extension of trading hours in equity derivatives segment to over eight and a half hours. This was decided to bring the timings in line with commodity markets and allow an integration of the different trading segments of the securities market.
Starting October 1, stock exchanges will be allowed to trade in equity derivatives segment from 09:00 am to 11:55 pm. Currently, they are open between 09:15 am and 03:30 pm.
In 2015, the former regulator of commodity futures market was merged with SEBI, following which it allowed unified exchanges for stocks, commodities and derivatives.
In order to seek the regulator's approval for extended trading hours, a detailed proposal including a framework for monitoring of positions, surveillance system, risk management, settlement process, manpower availability and system capability has to be presented.