Sebi allows exchanges to extend derivative trade till 11.55 pm

Markets regulator SEBI yesterday allowed exchanges to extend the trading time for equity derivatives till 11:55 PM from October 1. The move is part of SEBI's efforts to enable integration of stocks and commodities trading on a single exchange. 

This is similar to the trading hours for commodity derivatives segment which are presently fixed between 10 AM and 11:55 PM. The permission is subject to stock exchanges and clearing corporations have in place risk management system and infrastructure commensurate to the trading hours. 

In case, stock exchanges plan to extend the trade timings beyond the extent



trading hours, they would require prior approval from SEBI, according to a circular. The bourses will also be required to submit a detailed proposal, including the framework for risk management, settlement process, monitoring of positions, availability of manpower, system capability and surveillance systems.

This will come into effect from October 1. In December, the Sebi board had announced much-awaited integration of stocks and commodities trading on a single exchange from October this year. Currently, commodity derivatives are traded on separate exchanges, which include MCX and NCDEX.