India’s National Stock Exchange (NSE) has formally presented a proposal to the Securities and Exchange Board of India (SEBI), requesting permission to introduce evening trading sessions within the equity derivatives segment. In an exclusive interview with Sajeet Manghat of BQ Prime, Sriram Krishnan, the head of business development at NSE, outlined the comprehensive plan.
As per the proposed modifications, NSE is aiming to extend trading hours for index futures and options from 6 p.m. to 9 p.m. IST. Krishnan emphasized that transactions conducted during these extended hours would be considered part of the subsequent day’s trading volumes to eliminate any potential complications. He clarified, “whatever expiry is applicable to the next day’s trade…applies to the trades conducted between 6 and 9 p.m. on the previous day.” Krishnan anticipates that it will take “at least a couple of months” for these extended trading hours for derivatives to be implemented.
This initiative follows a phased approach set forth by NSE, which recommends a gradual extension of trading hours. Initially, the exchange seeks to expand trading hours for Index F&O until 9 p.m., followed by a second phase that would extend Index F&O trading until 11:30 p.m. The final phase of the plan envisions extending cash market trading hours until 5 p.m.
Proponents of this extension argue that it brings NSE more in line with global markets and accommodates the emergence of market-moving news during evening hours. This proposal is a response to SEBI’s reported deliberations on extending trading hours for the cash market, following NSE’s proposal for extended trading hours in the futures and options (F&O) segment.
