Extending-trading-hours is giving a headache to SEBI. Maybe only Index trading will be allowed in the first phase.
Maybe, SEBI want to bring more regulation to cut the retailers participation in F&O before the start of extending trading hours, hence want to delay it now!
SEBI wants exchanges to consider brokers’ views before extending trading hours
NSE and BSE had submitted a plan to extended trading hours till midnight from October 1. On May 4, SEBI had agreed to increase timings for equity derivatives trading to 11.55 pm.
https://www.moneycontrol.com/news/b...s-before-extending-trading-hours-2929301.html
It is really sad that most brokers in India are more concerned about sleeping early at night and reducing overheads by a few people's salaries rather than catering to the real spirit of the markets. To give you a perspective, in a recent broker meeting hosted by NSE, the discussion was primarily about the use of technology to develop the capital markets. NSE was very bullish on its technological upgrades and was communicating that to a crowd full of representatives of their Trading Members. The tone was very positive & leaning towards Algorithmic trading, APIs, and whatnot.
When the official of NSE asked the audience if anyone had questions about adopting technology and upgrading their platforms, one of the brokers stood up and asked them this -
"What is the benefit of extending trading hours till midnight if it will increase our cost, sir? What is the solution to this!?" And many shook their heads in agreement. You should've seen his reaction. Of course, the younger breed had an annoyed look on their faces too but majority wins.
SEBI is doing the right thing by consulting the brokers IMO because they are ultimately the active stakeholders who make things happen. What's sad is that most of these brokers don't want to evolve and want to stop the entire system from evolving along with them. That's the biggest disadvantage! The exchanges want to extend trading hours because it is directly proportional to the trading volumes but the brokers who have an advisory model to generate volumes want to get together and stop this transition.