The stock exchanges particularly the National Stock Exchange (NSE) has been asking for an extension of trading hours which at present is between 9.55 am and 3.30 pm.
While citing reasons for the demand, NSE said that it was losing out on the Singapore Stock Exchange (SGX) in the trading of Nifty futures, which is also listed on the SGX. The SGX opens early and closes trading after the market hours in India.
In response, the Indian market regulator has asked the stock exchanges to put necessary risk management system and infrastructure in place in order to be equipped to deal with the increase in trading hours.
This development has both pros and cons. The increased trading hours means that the investors will gain from in terms of taking advantage of both global and local information in one session. On the negative side, longer working hours implies additional cost to the brokerages.