SEBI’s permission to the stock exchanges to extend their trading hours fetched mixed reactions from the trading community, but the dominant response was unwelcoming. The markets watchdog has allowed the exchanges to set their timings from 9 a.m. to 5 p.m., from 9.55 a.m. to 3.30 p.m. Though this would align the Indian markets with those in Asia and Europe, an increase in market timings would mean added stress, said dealers, franchisees, sub-brokers, brokers and analysts.
A market closure of 3.30 p.m. itself sees work end only at 9 p.m. for most brokers and financial services franchisees. “The final data comes by 4 p.m., the files have to be updated and sent to the exchanges by 7 p.m., and wait for responses up to 9 p.m.,” said a sub-broker. “Our work will now completely end only by 11 p.m.”
A director at a broking firm noted that extended timing would see expenses also increase. “Keeping the office open for longer means higher expenses while volumes may not increase proportionately. Trading happens mostly in the first and last hour of trade. The rest of the time there is not much trade happening. The new timings will put more strain on our dealers. Think about our research team. They come in at 8.30 now with the new timing they will have to come by 7.30. And one can only imagine when they will leave,” he said.
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