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Rethink change in mkt time: Traders

NSE Chief Narain Says Bourse Won't Extend Closing Hour Beyond 3.30 PM

TNN & AGENCIES 

Mumbai: The opposition to the proposal by the two exchanges to extend trading hours is growing by the day. On Tuesday, a trade body of BSE members demanded that both, BSE and NSE, re-consider their decision to start trading at 9am, instead of the current market opening time of 9.55am. 
    The same day, Ravi Narain, MD, NSE told reporters that there was no proposal to extend market closing time to beyond 3.30pm. 
    On Tuesday, BSE Brokers' Forum, opposed the move by NSE and BSE to have an extra 50 minutes of trading in the morning. "The BSE Brokers Forum represents both the exchanges to take into consideration the ill-effects of the early opening at 9am on the market participants and investors at large and appeals to reconsider their decision," a release from the forum said. 
    Following opposition from the broking community and a timely intervention by Sebi, last week both the exchanges had to defer implementation of their decisions on early start of trading to January 4. 
    Last month, the forum had conducted a survey of its 550 members, and nearly 80% were found to be against extending the current trading hours, which is from 9.55am to 3.30pm. 
    "There is no clear benefit to any of the market participants and retail investors due to the said move. This will result in a lot of practical problems in our operations," Bhanubhai Fozdar, chairman, BSE Brokers' Forum said. "The Forum encourages the stock exchanges to be conscious of their socio-economic responsibilities as public bodies and keep in mind the interest of the other stakeholders of the capital market and the investing community at large," the release from the forum noted. 
    The exchanges expect that by extending trading hours, investors would get more time to react to global cues. And NSE in particular expects that part of the derivatives business in Nifty index, its benchmark index, which is done on the Singapore Exchange (SGX), could move back to the Indian market. Brokers however feel given SGX opens 2.30 hours before the Indian market opens, such shift back of business might not be possible. 
    Sebi is taking a neutral stance. On Monday C B Bhave, chairman, Sebi had said that the bourses were at liberty to take a call on extending trading hours. Speaking about the problems of extending trading hours beyond 3.30pm, NSE chief Narain said, "the challenges in extending beyond 3.30pm are more significant compared to challenges in opening earlier...RTGS, back office operations of brokerage will get stretched."