NSE Plans Extending Trading Hours for Derivatives Segment to Align with Global Events : Report

The National Stock Exchange (NSE), India’s largest bourse, is in the process of finalizing plans to gradually extend trading hours for the equity derivatives segment. The objective is to provide domestic traders with the opportunity to respond to global developments, according to reports citing sources familiar with the matter.

The proposed plan includes introducing an evening session for equity derivatives trading, scheduled to run from 6 pm to 9 pm. Market participants would have the opportunity to trade futures and options (F&O) contracts during this extended session, following the regular trading hours from 9:15 am to 3:30 pm.

In a later phase, the NSE is reportedly considering the possibility of extending the evening session until 11:30 pm. The exchange plans to roll out products in the evening session gradually, starting with index futures and options, including Nifty 50 and Bank Nifty.

Following index options, the NSE may contemplate introducing stock derivatives. The expiration dates and timings for all products are expected to remain unchanged. The NSE’s proposal envisions treating the evening session as a separate trading period and settling trades made during that session along with the next day’s regular session.

The NSE has submitted its plan to the Securities and Exchange Board of India (SEBI) for approval. Extending trading hours could provide domestic traders and investors with the ability to react to global news events, as the Indian stock market typically closes before US markets open.

SEBI has already established rules allowing futures and options (F&O) trading to continue until 11:55 pm and equity shares trading until 5 pm.