MSEI,erstwhile MCX Stock Exchange, has a proposal to seeking permission to extend timings for its equity platform. In 2009, the SEBI had allowed NSE and BSE to extend trading hours till 5:00 PM, but the exchanges refrained from implementing it due to opposition from the brokers. If MSEI decides to give investors more time to trade, NSE and BSE will be forced to follow suit.
Big brokers are unlikely to oppose the plan to extend the trading hours this time. Most of the large brokers are now already a part of currency derivatives segment which operates till 5 pm or are associates of commodity market which operates till 11.30 pm. Therefore, extending trading time for the equity and derivative segment won't be that of a problem this time.
Global exchanges also have different trading hours. Foreign exchanges like Euronext, Deutsche Borse, Six Swiss and BME Spanish offer extended trading hours till 5 pm or 5.30 pm.
The move to extend trading hours will facilitate members to reach out to investors in semi-urban and rural areas, enhance liquidity and broaden the shareholder base,
What do you think about extended trading hours, if that ever happens? Post your views and comments.