BSE, NSE to start trading at 9am from Jan 4
Published on Thursday, December 17th, 2009 at 9:53 PMAuthor: stockalert (2026 Articles)
“This is not a Coke versus Pepsi kind of situation and I don’t think leading institutions who run policies in this country can afford to behave like that. That has more than anything, left a bad taste in the mouth.” That’s how Editor Udayan Mukherjee summed up the chaos that resulted in both the BSE and the NSE advancing market open timings to 9 am with effect from Dec 18, at such short notice.
Now, both exchanges have delayed extension of trading hours. The exchanges to start trading at 9am from Jan 4.
Earlier in the day today, Editor Vivek Law had learnt from sources that the Sebi had asked stock exchanges to sit across the table on the timings issue. “Sebi does not like this one upmanship and has asked the exchanges to sit across the table and discuss this important issue, instead of taking decisions on a knee-jerk basis,” Law said.
He also explains that this was not a dictat and merely an advisory. However, both the BSE and NSE directors had gone on record saying that ‘given a choice’ they would not have opted for extended timings and they had done so only to align with the other exchange. Given that, Law had said that when both exchanges would sit and talk together, they might either postpone the decision of extended timings or go back to old timings till a consensus is reached.
Chronology
It all started in March this year, when the Securities and Exchange Board of India (SEBI) proposed an extension of trading hours of stock exchanges to align the domestic bourses with international markets. Sebi invited feedback from all concerned, and took a decision in October. Sebi permitted stock exchanges to begin the day as early as 9am and keep the market open for trading till 5pm. It left the final decision to the exchanges.
Soon after, a series of broker surveys were conducted to check if the system was indeed ready for longer hours.
A majority of stock brokers wanted the Bombay Stock Exchange to continue with the same market timing and see no volume benefit in extending market hours, a survey by the exchanges’ brokers forum showed.
More than 79% of the 418 trading members surveyed felt the current 9:55 am to 3:30 pm trading timing should stay, the survey showed.
The Association of National Exchange Members of India (ANMI) also conducted an online survey to gauge the opinion of the member brokers and investors at large. Over 800 brokers were surveyed of which 50% did not respond. 62% of those polled did not want trading hours to be extended.
However, earlier this week, BSE went ahead and advanced its opening timing by 10 minutes to 9.45 am with effect from Friday, 18th Dec. In response, the NSE advanced its opening to 9am after which BSE also followed suit.
Source : MoneyControl
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it is foolish thing to start the fixed time which was so many decades. the practical problems such bank/transporation/conjection in traffic/school going childrens are the main plus bank wl open only around 9 am only and close 2.30 pm which cannot be altered.
shift system cannot be implied here. let us see how the norms will apply wait for 4th Jan 2010 bye
any comments to my view is welcome by anybody