Stock Market Trading Hours Will Extend: Date, Impact, Risk

These days everywhere in media and news channel you will find Stock Market Trading Hours will extends by NSE. A group of community are against it and few are supporting it, but if the trading hour time extended what would be the implications, in this post we will discuss all about it in details.

Stock Market Trading Hours Will Extend

Reports says NSE is in talk with SEBI to extend the stock market trading hour, As we all know the current time for Indian stock market is 9:15 to 3:30. Now the revised time will be extend to 5 PM for equity market and for the derivative market it will be extended to 11:55 PM. Report says NSE has sent a proposal to SEBI regarding it. Whereas the time for commodity market is 10 AM to 11:30 PM. Is seems that NSE is inspired by commodity market to extend their time.

From Which Date Trading Hours Will Extend ?

Currently there NSE or SEBI have not announced any official date, from which date the stock market trading hour will extend, but it is expected that it should take 4 to 6 months of time, as the date will be announced we will updated it.

In which circumstances SEBI Extend Trading hours ?

Generally during trading hour when some technical error occurs and because of that Exchange halt the exchange for some time, then SEBI have the right to extend the trading hours. Suppose due to any technical glitch SEBI has to stop the exchange for 2 to 3 hours, and there could be possibility that SEBI could increase the trading hour beyond 3.30 PM to 5PM or more, the decision could be completely taken by SEBI or NSE. Or if they want then they could postpone it for next day.

In these situation if the system is not operational by 2:15 PM, then the possibility is the market will remain open till 5PM.

During any technical issue caused to stop the exchange, the exchange will publicly announce that trading time has been increased by 1:30 hours. 

Again its completely on exchange that they want to extend the trading time or not. Therefore not can interfere in it.

Who will get benefited if the Trading hour extended

Participation of other community

A large numbers of community who could not participate due to their job in other sector, there is the possibility that they could participate after 5 PM specially in derivative segment, where Future and options trading happens, therefore it is possible that we could see a number of participation that will definitely increase the liquidity.

Exchange and Brokers will get benefited

Currently we have only 6 hours of time to trader, but as the trading time will extend then billions of order will be placed that will definitely increase the revenue for Exchange as well as brokers to generate lots of brokerages and taxes for exchange and government.

Trading Hours Extended, SEBI Risk ?

Source: Abhishek Kar

Negative Impact If the Trading Hour Extended

Trader will lose more money

Data says currently 90% of traders lose their money in day trading that is only performed in 6 hours, if the trading time extended to 11:55 PM, then you can imagine how much the number will increase of losing side.

Health issue

Definitely you have faced some health related issue when you continue sitting in front of monitor, but when the trading time will extend from 6 hours to 15 hours you can imagine how badly it will impact the health related issue. But most of the people say it’s  on you, you can avoid  too much of trading, but I would like to tell you trading is an addiction, if the market will open then in any ways you will track the market and they can’t stop themselves to control their urge to take trade.