NSE seeks SEBI approval for extended trading hours, with sessions potentially running until 11.30 p.m.
The move aims to help Indian traders react faster to global events, but broker infrastructure and staffing pose challenges.
Extended hours benefit retail traders for portfolio hedging and derivative traders for adjusting positions based on global cues.
Adapting to longer hours requires significant changes in infrastructure, posing challenges for brokers and staff.
Extended hours are expected to increase trading volumes and reduce gap-up or gap-down market openings.
Longer hours may create price disparities between cash and derivatives markets, requiring enhanced risk management.
Indian derivatives market ranks second globally in turnover, raising questions about the need for additional trading volumes.
Source: Moneycontrol